Anheuser-Busch InBev NV (ADR) (NYSE:BUD) was in 31 hedge funds’ portfolio at the end of the first quarter of 2013. BUD investors should be aware of an increase in hedge fund sentiment in recent months. There were 26 hedge funds in our database with BUD positions at the end of the previous quarter.
In the financial world, there are plenty of methods investors can use to analyze their holdings. Two of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outpace their index-focused peers by a superb amount (see just how much).
Equally as key, positive insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are a number of incentives for a bullish insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Now, let’s take a look at the recent action encompassing Anheuser-Busch InBev NV (ADR) (NYSE:BUD).
How are hedge funds trading Anheuser-Busch InBev NV (ADR) (NYSE:BUD)?
In preparation for this quarter, a total of 31 of the hedge funds we track held long positions in this stock, a change of 19% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.
According to our comprehensive database, James Crichton and Adam Weiss’s Scout Capital Management had the biggest position in Anheuser-Busch InBev NV (ADR) (NYSE:BUD), worth close to $444 million, comprising 5.7% of its total 13F portfolio. The second largest stake is held by Tom Russo of Gardner Russo & Gardner, with a $429.1 million position; the fund has 5% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, Daniel S. Och’s OZ Management and Jean-Marie Eveillard’s First Eagle Investment Management.
As industrywide interest jumped, some big names have been driving this bullishness. First Pacific Advisors LLC, managed by Robert Rodriguez and Steven Romick, initiated the largest position in Anheuser-Busch InBev NV (ADR) (NYSE:BUD). First Pacific Advisors LLC had 220.6 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated a $142 million position during the quarter. The other funds with new positions in the stock are Jean-Marie Eveillard’s First Eagle Investment Management, Christopher R. Hansen’s Valiant Capital, and James Dinan’s York Capital Management.
Insider trading activity in Anheuser-Busch InBev NV (ADR) (NYSE:BUD)
Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past 180 days. Over the last half-year time period, Anheuser-Busch InBev NV (ADR) (NYSE:BUD) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Anheuser-Busch InBev NV (ADR) (NYSE:BUD). These stocks are Boston Beer Co Inc (NYSE:SAM), Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU), Molson Coors Brewing Company (NYSE:TAP), Fomento Economico Mexicano SAB (ADR) (NYSE:FMX), and Companhia de Bebidas das Americas (ADR) (NYSE:ABV). This group of stocks are the members of the beverages – brewers industry and their market caps resemble BUD’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Boston Beer Co Inc (NYSE:SAM)||9||0||9|
|Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU)||5||0||0|
|Molson Coors Brewing Company (NYSE:TAP)||19||0||7|
|Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)||22||0||0|
|Companhia de Bebidas das Americas (ADR) (NYSE:ABV)||20||0||0|
With the results shown by Insider Monkey’s time-tested strategies, retail investors must always watch hedge fund and insider trading sentiment, and Anheuser-Busch InBev NV (ADR) (NYSE:BUD) is an important part of this process.