Hedge Funds Are Selling America Movil SAB de CV (ADR) (AMX)

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Is America Movil SAB de CV (ADR) (NYSE:AMX) a good investment?

Now, according to many of your peers, hedge funds are seen as delayed, outdated investment vehicles of a period lost to current times. Although there are more than 8,000 hedge funds trading currently, this site looks at the aristocrats of this group, around 525 funds. It is widely held that this group oversees the lion’s share of the smart money’s total assets, and by tracking their highest performing picks, we’ve brought to light a number of investment strategies that have historically outperformed the S&P 500. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Just as crucial, optimistic insider trading activity is another way to analyze the marketplace. Obviously, there are lots of motivations for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the useful potential of this tactic if shareholders know what to do (learn more here).

Furthermore, let’s examine the latest info for America Movil SAB de CV (ADR) (NYSE:AMX).

How are hedge funds trading America Movil SAB de CV (ADR) (NYSE:AMX)?

In preparation for the third quarter, a total of 15 of the hedge funds we track were long in this stock, a change of -12% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their holdings substantially.

America Movil SAB de CV (ADR) (NYSE:AMX)When using filings from the hedgies we track, Cliff Asness’s AQR Capital Management had the most valuable position in America Movil SAB de CV (ADR) (NYSE:AMX), worth close to $29.2 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $22.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Jane Mendillo’s Harvard Management Co, Charles Akre’s Akre Capital Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Judging by the fact that America Movil SAB de CV (ADR) (NYSE:AMX) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of fund managers who were dropping their full holdings at the end of the second quarter. Interestingly, James Melcher’s Balestra sold off the biggest stake of the “upper crust” of funds we watch, valued at about $19 million in stock. Quincy Lee’s fund, Ancient Art (Teton Capital), also dropped its stock, about $3.7 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 2 funds at the end of the second quarter.

What do corporate executives and insiders think about America Movil SAB de CV (ADR) (NYSE:AMX)?

Insider buying is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest half-year time period, America Movil SAB de CV (ADR) (NYSE:AMX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to America Movil SAB de CV (ADR) (NYSE:AMX). These stocks are Rogers Communications Inc. (USA) (NYSE:RCI), China Mobile Ltd. (ADR) (NYSE:CHL), Telefonica Brasil SA (ADR) (NYSE:VIV), China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), and Vodafone Group Plc (ADR) (NASDAQ:VOD). This group of stocks are the members of the wireless communications industry and their market caps match AMX’s market cap.

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