Do Hedge Funds Love Sociedad Quimica y Minera de Chile (ADR) (SQM)?

Seeing as Sociedad Quimica y Minera de Chile (ADR) (NYSE:SQM) has sustained falling interest from the smart money, we can see that there was a specific group of hedge funds that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, David Iben’s Kopernik Global Investors said goodbye to the largest position of the “upper crust” of funds followed by Insider Monkey, worth about $5.6 million in stock, and Joseph Oughourlian and Michel Brogard’s Amber Capital was right behind this move, as the fund sold off about $4.4 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Sociedad Quimica y Minera de Chile (ADR) (NYSE:SQM). We will take a look at 58.com Inc (ADR) (NYSE:WUBA), Zillow Inc (NASDAQ:Z), Pilgrim’s Pride Corporation (NASDAQ:PPC), and Align Technology, Inc. (NASDAQ:ALGN). This group of stocks’ market values resemble SQM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WUBA 23 1038149 -6
Z 26 614342 0
PPC 21 235777 1
ALGN 37 589442 11

As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $619 million. That figure was $78 million in SQM’s case. Align Technology, Inc. (NASDAQ:ALGN) is the most popular stock in this table. On the other hand Pilgrim’s Pride Corporation (NASDAQ:PPC) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Sociedad Quimica y Minera de Chile (ADR) (NYSE:SQM) is even less popular than PPC. 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