Is Grupo Televisa SAB (ADR) (NYSE:TV) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Hedge fund interest in Grupo Televisa SAB (ADR) (NYSE:TV) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare TV to other stocks including American Water Works Co., Inc. (NYSE:AWK), Energy Transfer Equity, L.P. (NYSE:ETE), and Incyte Corporation (NASDAQ:INCY) to get a better sense of its popularity.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, we’re going to analyze the latest action regarding Grupo Televisa SAB (ADR) (NYSE:TV).
How are hedge funds trading Grupo Televisa SAB (ADR) (NYSE:TV)?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Lone Pine Capital, managed by Stephen Mandel, holds the most valuable position in Grupo Televisa SAB (ADR) (NYSE:TV). According to regulatory filings, the fund has a $464.4 million position in the stock, comprising 2.1% of its 13F portfolio. The second most bullish fund manager is Bill & Melinda Gates Foundation Trust, led by Michael Larson, holding a $433.6 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other peers with similar optimism include Robert Joseph Caruso’s Select Equity Group, Ken Fisher’s Fisher Asset Management and Bob Peck and Andy Raab’s FPR Partners.
Judging by the fact that Grupo Televisa SAB (ADR) (NYSE:TV) has experienced no change in interest from the aggregate hedge fund industry, we will take a look at a certain “tier” of hedge funds who were dropping their positions entirely by the end of the third quarter. Interestingly, Jean-Marie Eveillard’s First Eagle Investment Management dumped the largest stake of the 700 funds watched by Insider Monkey, worth about $901.3 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund sold off about $7.4 million worth of Grupo Televisa shares. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Grupo Televisa SAB (ADR) (NYSE:TV) but similarly valued. These stocks are American Water Works Co., Inc. (NYSE:AWK), Energy Transfer Equity, L.P. (NYSE:ETE), Incyte Corporation (NASDAQ:INCY), and Rockwell Automation (NYSE:ROK). This group of stocks’ market valuations are closest to TV’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AWK | 24 | 404404 | 3 |
| ETE | 20 | 690246 | -10 |
| INCY | 45 | 3250309 | 13 |
| ROK | 28 | 431726 | -3 |
As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.19 billion. That figure was $1.69 billion in TV’s case. Incyte Corporation (NASDAQ:INCY) is the most popular stock in this table. On the other hand Energy Transfer Equity, L.P. (NYSE:ETE) is the least popular one with only 20 bullish hedge fund positions. Grupo Televisa SAB (ADR) (NYSE:TV) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard INCY might be a better candidate to consider a long position.
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Disclosure: None
