Hedge Funds Never Been Less Bullish On Corporacion America Airports SA (CAAP)

We at Insider Monkey have gone over 817 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Corporacion America Airports SA (NYSE:CAAP) based on that data.

Is Corporacion America Airports SA (NYSE:CAAP) a bargain? The smart money was taking a pessimistic view. The number of long hedge fund bets dropped by 3 in recent months. Corporacion America Airports SA (NYSE:CAAP) was in 4 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 14. Our calculations also showed that CAAP isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks). There were 7 hedge funds in our database with CAAP positions at the end of the second quarter.

Video: Watch our video about the top 5 most popular hedge fund stocks.

To the average investor there are dozens of formulas market participants employ to value stocks. A duo of the most useful formulas are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can trounce the market by a healthy margin (see the details here).

Ken Griffin

Ken Griffin of Citadel Investment Group

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s review the key hedge fund action surrounding Corporacion America Airports SA (NYSE:CAAP).

Hedge fund activity in Corporacion America Airports SA (NYSE:CAAP)

At third quarter’s end, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -43% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CAAP over the last 21 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is CAAP A Good Stock To Buy?

When looking at the institutional investors followed by Insider Monkey, Noah Levy and Eugene Dozortsev’s Newtyn Management has the biggest position in Corporacion America Airports SA (NYSE:CAAP), worth close to $2.7 million, accounting for 0.7% of its total 13F portfolio. On Newtyn Management’s heels is Michael R. Weisberg of Crestwood Capital Management, with a $1.2 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and . In terms of the portfolio weights assigned to each position Newtyn Management allocated the biggest weight to Corporacion America Airports SA (NYSE:CAAP), around 0.65% of its 13F portfolio. Crestwood Capital Management is also relatively very bullish on the stock, dishing out 0.54 percent of its 13F equity portfolio to CAAP.

Due to the fact that Corporacion America Airports SA (NYSE:CAAP) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there is a sect of money managers that slashed their entire stakes heading into Q4. Interestingly, Bruce J. Richards and Louis Hanover’s Marathon Asset Management sold off the largest investment of the 750 funds watched by Insider Monkey, worth close to $0.6 million in stock, and John Overdeck and David Siegel’s Two Sigma Advisors was right behind this move, as the fund sold off about $0.1 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 3 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Corporacion America Airports SA (NYSE:CAAP). These stocks are Cellular Biomedicine Group, Inc. (NASDAQ:CBMG), Superior Group of Companies, Inc. (NASDAQ:SGC), Fortress Biotech Inc (NASDAQ:FBIO), Bluegreen Vacations Corporation (NYSE:BXG), Cardiff Oncology, Inc. (NASDAQ:CRDF), ShotSpotter, Inc. (NASDAQ:SSTI), and Waitr Holdings Inc. (NASDAQ:WTRH). This group of stocks’ market valuations match CAAP’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBMG 7 18005 3
SGC 6 9509 2
FBIO 8 48680 2
BXG 5 1706 -3
CRDF 17 113568 10
SSTI 10 27169 3
WTRH 13 62868 -4
Average 9.4 40215 1.9

View table here if you experience formatting issues.

As you can see these stocks had an average of 9.4 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $4 million in CAAP’s case. Cardiff Oncology, Inc. (NASDAQ:CRDF) is the most popular stock in this table. On the other hand Bluegreen Vacations Corporation (NYSE:BXG) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Corporacion America Airports SA (NYSE:CAAP) is even less popular than BXG. Our overall hedge fund sentiment score for CAAP is 10.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Hedge funds clearly dropped the ball on CAAP as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on CAAP as the stock returned 43% since Q3 (through November 27th) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.