Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here is What Hedge Funds Think About Coca-Cola FEMSA, S.A.B. de C.V. (KOF)

Is Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) 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 investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.

Hedge fund interest in Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) 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 KOF to other stocks including Akamai Technologies, Inc. (NASDAQ:AKAM), Annaly Capital Management, Inc. (NYSE:NLY), and Hasbro, Inc. (NASDAQ:HAS) to get a better sense of its popularity. Our calculations also showed that KOF isn’t among the 30 most popular stocks among hedge funds (view the video below).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

At the moment there are plenty of methods stock traders have at their disposal to assess stocks. A couple of the less utilized methods are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the S&P 500 by a healthy amount (see the details here).

KOF_oct2019

Unlike some fund managers who are betting on Dow reaching 40000 in a year, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We’re going to take a gander at the fresh hedge fund action encompassing Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF).

How are hedge funds trading Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)?

At the end of the second quarter, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards KOF over the last 16 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

AQR CAPITAL MANAGEMENT

Cliff Asness of AQR Capital Management

More specifically, Bill & Melinda Gates Foundation Trust was the largest shareholder of Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), with a stake worth $386.2 million reported as of the end of March. Trailing Bill & Melinda Gates Foundation Trust was Renaissance Technologies, which amassed a stake valued at $86.3 million. Millennium Management, AQR Capital Management, and Arrowstreet Capital were also very fond of the stock, giving the stock large weights in their portfolios.

Judging by the fact that Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) has faced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of fund managers that decided to sell off their entire stakes by the end of the second quarter. Interestingly, Ken Griffin’s Citadel Investment Group dropped the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $0.5 million in call options. Matthew Hulsizer’s fund, PEAK6 Capital Management, also cut its call options, about $0.4 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF). We will take a look at Akamai Technologies, Inc. (NASDAQ:AKAM), Annaly Capital Management, Inc. (NYSE:NLY), Hasbro, Inc. (NASDAQ:HAS), and Chewy, Inc. (NYSE:CHWY). All of these stocks’ market caps are closest to KOF’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AKAM 33 841204 5
NLY 21 224083 0
HAS 24 383765 6
CHWY 38 621104 38
Average 29 517539 12.25

View table here if you experience formatting issues.

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 $518 million. That figure was $495 million in KOF’s case. Chewy, Inc. (NYSE:CHWY) is the most popular stock in this table. On the other hand Annaly Capital Management, Inc. (NYSE:NLY) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) is even less popular than NLY. Hedge funds dodged a bullet by taking a bearish stance towards KOF. Our calculations showed that the top 20 most popular hedge fund stocks returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately KOF wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); KOF investors were disappointed as the stock returned -2.4% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far in 2019.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.