What Do Hedge Funds Think of Companhia de Saneamento Basico (ADR) (SBS)?

Because Companhia de Saneamento Basico (ADR) (NYSE:SBS) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers who sold off their entire stakes by the end of the third quarter. Intriguingly, Mike Vranos’s Ellington dropped the largest investment of the “upper crust” of funds followed by Insider Monkey, comprising close to $0.1 million in stock. Matthew Hulsizer’s fund, PEAK6 Capital Management, also dropped its position in the stock. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Companhia de Saneamento Basico (ADR) (NYSE:SBS) but similarly valued. We will take a look at Armstrong World Industries, Inc. (NYSE:AWI), Noble Corporation (NYSE:NE), Compass Minerals International, Inc. (NYSE:CMP), and Agios Pharmaceuticals Inc (NASDAQ:AGIO). All of these stocks’ market caps resemble SBS’s market cap.

As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $404 million. That figure was $89 million in SBS’s case. Armstrong World Industries, Inc. (NYSE:AWI) is the most popular stock in this table. On the other hand Agios Pharmaceuticals Inc (NASDAQ:AGIO) is the least popular one with only 9 bullish hedge fund positions. Companhia de Saneamento Basico (ADR) (NYSE:SBS) 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 AWI might be a better candidate to consider a long position.