How Gerdau SA (ADR) (GGB) Stacks Up Against Its Peers?

Seeing as Gerdau SA (ADR) (NYSE:GGB) has gone through falling interest from the smart money, it’s easy to see that there lies a certain “tier” of fund managers who sold off their entire stakes last quarter. Interestingly, Phill Gross and Robert Atchinson’s Adage Capital Management sold off the biggest investment of all the investors monitored by Insider Monkey, comprising about $21.6 million in stock, and Jon Bauer’s Contrarian Capital was right behind this move, as the fund dropped about $0.5 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Gerdau SA (ADR) (NYSE:GGB) but similarly valued. We will take a look at Blue Buffalo Pet Products Inc (NASDAQ:BUFF), Enel Chile SA – ADR (NYSE:ENIC), HEICO Corporation (NYSE:HEI), and Bank Of The Ozarks Inc (NASDAQ:OZRK). All of these stocks’ market caps are closest to GGB’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $268 million. That figure was $118 million in GGB’s case. Blue Buffalo Pet Products Inc (NASDAQ:BUFF) is the most popular stock in this table. On the other hand Enel Chile SA – ADR(NYSE:ENIC) is the least popular one with only 5 bullish hedge fund positions. Gerdau SA (ADR) (NYSE:GGB) 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 BUFF might be a better candidate to consider taking a long position in.