Should You Buy Ambev SA (ADR) (ABEV)?

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. OZ Management, managed by Daniel S. Och, created the most outsized position in Ambev SA (ADR) (NYSE:ABEV). OZ Management had $31.7 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated an $24.5 million position during the quarter. The other funds with brand new ABEV positions are Matthew Tewksbury’s Stevens Capital Management and Chao Ku’s Nine Chapters Capital Management.

Let’s go over hedge fund activity in other stocks similar to Ambev SA (ADR) (NYSE:ABEV). We will take a look at Union Pacific Corporation (NYSE:UNP), Banco Santander, S.A. (ADR) (NYSE:SAN), Goldman Sachs Group, Inc. (NYSE:GS), and American Express Company (NYSE:AXP). This group of stocks’ market valuations match ABEV’s market valuation.

As you can see these stocks had an average of 46.5 hedge funds with bullish positions and the average amount invested in these stocks was $5838 million. That figure was $608 million in ABEV’s case. Goldman Sachs Group, Inc. (NYSE:GS) is the most popular stock in this table. On the other hand Banco Santander, S.A. (ADR) (NYSE:SAN) is the least popular one with only 16 bullish hedge fund positions. Ambev SA (ADR) (NYSE:ABEV) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GS might be a better candidate to consider a long position.