Is Southern Copper Corp (SCCO) Going to Burn These Hedge Funds?

Judging by the fact that Southern Copper Corp (NYSE:SCCO) has faced bearish sentiment from hedge fund managers, it’s easy to see that there exists a select few fund managers that elected to cut their entire stakes by the end of the third quarter. Intriguingly, Steve Cohen’s Point72 Asset Management cashed in the largest position of the “upper crust” of funds watched by Insider Monkey, worth about $21.4 million in stock, and Steve Cohen’s Point72 Asia (Singapore) was right behind this move, as the fund dumped about $18.2 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Southern Copper Corp (NYSE:SCCO). We will take a look at Sirius XM Holdings Inc (NASDAQ:SIRI), L Brands Inc (NYSE:LB), Omnicom Group Inc. (NYSE:OMC), and Hormel Foods Corporation (NYSE:HRL). All of these stocks’ market caps resemble SCCO’s market cap.

As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $913 million. That figure was $75 million in SCCO’s case. L Brands Inc (NYSE:LB) is the most popular stock in this table. On the other hand Omnicom Group Inc. (NYSE:OMC) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Southern Copper Corp (NYSE:SCCO) is even less popular than OMC. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.