Is Santander Mexico Fincl Gp SAB deCV (ADR) (BSMX) Going To Disappoint Investors?

As one would reasonably expect, key money managers were leading the bulls’ herd. GLG Partners initiated the most outsized call position in Santander Mexico Fincl Gp SAB deCV (ADR) (NYSE:BSMX). Jacob Rothschild’s RIT Capital Partners also initiated a $1.3 million position during the quarter. The following funds were also among the new BSMX investors: Israel Englander’s Millennium Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Santander Mexico Fincl Gp SAB deCV (ADR) (NYSE:BSMX) but similarly valued. These stocks are Silver Wheaton Corp. (USA) (NYSE:SLW), Global Payments Inc (NYSE:GPN), Quest Diagnostics Inc (NYSE:DGX), and CMS Energy Corporation (NYSE:CMS). This group of stocks’ market valuations match BSMX’s market valuation.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $422 million. That figure was $25 million in BSMX’s case. Silver Wheaton Corp. (USA) (NYSE:SLW) is the most popular stock in this table. On the other hand CMS Energy Corporation (NYSE:CMS) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Santander Mexico Fincl Gp SAB deCV (ADR) (NYSE:BSMX) is even less popular than CMS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None