Hedge Fund Interest in Companhia de Saneamento Basico (ADR) (SBS) Flatlines

Since Companhia de Saneamento Basico (ADR) (NYSE:SBS) has witnessed a decline in interest from hedge fund managers, it’s safe to say that there were a few hedgies that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that Paul Singer’s Elliott Management said goodbye to the largest stake of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $72.6 million in stock, and Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners was right behind this move, as the fund dumped about $1.6 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Companhia de Saneamento Basico (ADR) (NYSE:SBS) but similarly valued. These stocks are Trimble Navigation Limited (NASDAQ:TRMB), Kilroy Realty Corp (NYSE:KRC), iShares MSCI ACWI Index Fund (NASDAQ:ACWI), and TransUnion (NYSE:TRU). This group of stocks’ market valuations are similar to SBS’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $362 million. That figure was $206 million in SBS’s case. TransUnion (NYSE:TRU) is the most popular stock in this table. On the other hand iShares MSCI ACWI Index Fund (NASDAQ:ACWI) is the least popular one with only 9 bullish hedge fund positions. Companhia de Saneamento Basico (ADR) (NYSE:SBS) 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 TRU might be a better candidate to consider taking a long position in.

Disclosure: None