Do Hedge Funds Love Globant SA (GLOB)?

As aggregate interest increased, key money managers have jumped into Globant SA (NYSE:GLOB) headfirst. Polar Capital assembled the most valuable position in Globant SA (NYSE:GLOB). Polar Capital had $7.2 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also made a $3.4 million investment in the stock during the quarter. The other funds with brand new GLOB positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Cliff Asness’ AQR Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Globant SA (NYSE:GLOB) but similarly valued. These stocks are OM Group, Inc. (NYSE:OMG), CSG Systems International, Inc. (NASDAQ:CSGS), FelCor Lodging Trust Incorporated (NYSE:FCH), and Brady Corp (NYSE:BRC). This group of stocks’ market caps resembles Globant SA (NYSE:GLOB)’s market cap.

As you can see, these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $141 million. That figure was $47 million in Globant SA (NYSE:GLOB)’s case. OM Group, Inc. (NYSE:OMG) is the most popular stock in this table. On the other hand, Brady Corp (NYSE:BRC) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks, Globant SA (NYSE:GLOB) is even less popular than Brady Corp (NYSE:BRC). 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.