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Enersis S.A. (ADR) (ENI): Hedge Fund Sentiment is Weak and Unchanged

The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Enersis S.A. (ADR) (NYSE:ENI).

Is Enersis S.A. (ADR) (NYSE:ENI) undervalued? Money managers are in a bearish mood. There were only 13 hedge funds with bullish positions in ENI. The number of bullish hedge fund bets stayed the same. Overall hedge fund sentiment is negative for a $12 billion stock.

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In the eyes of most investors, hedge funds are perceived as underperforming, outdated financial vehicles of years past. While there are over 8000 funds with their doors open at the moment, Hedge fund experts at Insider Monkey look at the top tier of this club, approximately 700 funds. It is estimated that this group of investors direct the majority of the hedge fund industry’s total capital, and by keeping an eye on their finest investments, Insider Monkey has formulated several investment strategies that have historically surpassed Mr. Market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for more than a decade in our back tests.

With all of this in mind, let’s go over the latest action surrounding Enersis S.A. (ADR) (NYSE:ENI).

How are hedge funds trading Enersis S.A. (ADR) (NYSE:ENI)?

At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings substantially.

AQR Capital Management, managed by Cliff Asness, holds the biggest position in Enersis S.A. (ADR) (NYSE:ENI). AQR Capital Management has a $60.8 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Joseph Oughourlian and Michel Brogard of Amber Capital, with a $27.5 million position; the fund has 35% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism contain Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.

Since Enersis S.A. (ADR) (NYSE:ENI) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of funds that elected to cut their full holdings at the end of the first quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management sold off the largest position of all the hedgies tracked by Insider Monkey, totaling an estimated $6 million in stock, and J. Alan Reid, Jr. of Forward Management was right behind this move, as the fund said goodbye to about $1.2 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Enersis S.A. (ADR) (NYSE:ENI). We will take a look at Universal Health Services, Inc. (NYSE:UHS), CarMax, Inc (NYSE:KMX), Akamai Technologies, Inc. (NASDAQ:AKAM), and Macerich Co (NYSE:MAC). This group of stocks’ market caps match ENI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UHS 44 1040008 -6
KMX 27 890630 -13
AKAM 37 964219 -2
MAC 21 431708 -8

As you can see other stocks had more hedge funds with bullish positions and these positions were much larger than the positions of the hedge funds that invested in ENI. Universal Health Services was the most popular name among these stocks, followed by Akamai Technologies (AKAM). By the way, most of the hedge funds that were betting on ENI were quant hedge funds that systematically invest in a large number of international stocks and their involvement isn’t a strong bullish signal in most cases. Not getting strong signals from hedge funds doesn’t necessarily mean that ENI is a bad investment. However, it isn’t doing a good job at attracting investor in America.

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