Do Hedge Funds and Insiders Love Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)?

Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) was in 23 hedge funds’ portfolio at the end of December. FMX shareholders have witnessed an increase in hedge fund interest recently. There were 22 hedge funds in our database with FMX positions at the end of the previous quarter.

Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)

In the financial world, there are dozens of metrics market participants can use to track publicly traded companies. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite investment managers can beat the S&P 500 by a healthy margin (see just how much).

Equally as beneficial, optimistic insider trading sentiment is another way to break down the financial markets. Obviously, there are plenty of stimuli for an upper level exec to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).

Now, we’re going to take a look at the key action surrounding Fomento Economico Mexicano SAB (ADR) (NYSE:FMX).

What have hedge funds been doing with Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)?

In preparation for this year, a total of 23 of the hedge funds we track were long in this stock, a change of 5% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially.

Of the funds we track, Lee Ainslie’s Maverick Capital had the largest position in Fomento Economico Mexicano SAB (ADR) (NYSE:FMX), worth close to $98 million, accounting for 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Christopher R. Hansen of Valiant Capital, with a $58 million position; the fund has 5.7% of its 13F portfolio invested in the stock. Other peers that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Michael Larson’s Bill & Melinda Gates Foundation Trust and Mario Gabelli’s GAMCO Investors.

As one would reasonably expect, specific money managers have been driving this bullishness. Kingdon Capital, managed by Mark Kingdon, established the most outsized position in Fomento Economico Mexicano SAB (ADR) (NYSE:FMX). Kingdon Capital had 7 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Paul Hudson’s Glade Brook Capital Partners, SAC Subsidiary’s Sigma Capital Management, and D. E. Shaw’s D E Shaw.

Insider trading activity in Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)

Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time period, Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s time-tested strategies, everyday investors should always monitor hedge fund and insider trading activity, and Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) applies perfectly to this mantra.

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