Should You Buy Compania Cervecerias Unidas S.A. (ADR) (CCU)?

As aggregate interest increased, key money managers have been driving this bullishness. Arrowstreet Capital initiated the biggest position in Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU). Arrowstreet Capital had $5.5 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also made a $0.7 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) but similarly valued. We will take a look at Biomed Realty Trust Inc (NYSE:BMR), American Campus Communities, Inc. (NYSE:ACC), AGCO Corporation (NYSE:AGCO), and Credit Acceptance Corp. (NASDAQ:CACC). This group of stocks’ market caps is similar to Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU)’s market cap.

As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $344 million. That figure was $227 million in Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU)’s case. AGCO Corporation (NYSE:AGCO) is the most popular stock in this table. On the other hand, American Campus Communities, Inc. (NYSE:ACC) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks, Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) is even less popular than American Campus Communities, Inc. (NYSE:ACC). 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.