Why Anheuser-Busch InBev NV (ADR) (BUD)’s Stock Is Gaining Ground Today?

Because Anheuser-Busch InBev NV (ADR) (NYSE:BUD) has experienced a declining sentiment from hedge fund managers, it’s safe to say that there is a sect of hedgies who were dropping their full holdings by the end of the first quarter. Intriguingly, Chase Coleman’s Tiger Global Management LLC said goodbye to the largest stake of the “upper crust” of funds watched by Insider Monkey, comprising about $235.6 million in stock. Robert Rodriguez and Steven Romick’s fund, First Pacific Advisors LLC, also said goodbye to its stock, about $142.4 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds by the end of the first quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Anheuser-Busch InBev NV (ADR) (NYSE:BUD) but similarly valued. We will take a look at Alibaba Group Holding Ltd (NYSE:BABA), Pfizer Inc. (NYSE:PFE), Chevron Corporation (NYSE:CVX), and Royal Dutch Shell plc (ADR) (NYSE:RDS). All of these stocks’ market caps are closest to BUD’s market cap.

As you can see these stocks had an average of 67 hedge funds with bullish positions and the average amount invested in these stocks was $4035 million. That figure was $5146 million in BUD’s case. Pfizer Inc. (NYSE:PFE) is the most popular stock in this table. On the other hand Royal Dutch Shell plc (ADR) (NYSE:RDS) is the least popular one with only 34 bullish hedge fund positions. Compared to these stocks Anheuser-Busch InBev NV (ADR) (NYSE:BUD) is even less popular than RDS. 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.

Disclosure: None