Ternium SA (ADR) (TX): Hedge Fund Sentiment Unchanged

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Judging by the fact that Ternium SA (ADR) (NYSE:TX) has weathered bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers that decided to sell off their entire stakes last quarter. Interestingly, Matthew Hulsizer’s PEAK6 Capital Management cashed in the largest investment of all the hedgies tracked by Insider Monkey, totaling an estimated $1.2 million in call options. Michael Platt and William Reeves’s fund, BlueCrest Capital Mgmt., also said goodbye to its stock, about $0.4 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Ternium SA (ADR) (NYSE:TX) but similarly valued. These stocks are Syntel, Inc. (NASDAQ:SYNT), VWR Corp (NASDAQ:VWR), SYNNEX Corporation (NYSE:SNX), and Credit Acceptance Corp. (NASDAQ:CACC). This group of stocks’ market values are similar to TX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SYNT 15 53525 -3
VWR 26 288144 5
SNX 17 126694 4
CACC 24 795952 3

As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $316 million. That figure was $89 million in TX’s case. VWR Corp (NASDAQ:VWR) is the most popular stock in this table. On the other hand Syntel, Inc. (NASDAQ:SYNT) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Ternium SA (ADR) (NYSE:TX) is even less popular than SYNT. 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.

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Disclosure: None




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