Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 817 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about America Movil SAB de CV (NYSE:AMX).
Is AMX a good stock to buy now? America Movil SAB de CV (NYSE:AMX) has seen an increase in hedge fund interest lately. America Movil SAB de CV (NYSE:AMX) was in 15 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistic is 17. There were 11 hedge funds in our database with AMX holdings at the end of June. Our calculations also showed that AMX 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).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the eyes of most shareholders, hedge funds are assumed to be slow, outdated financial vehicles of yesteryear. While there are greater than 8000 funds in operation at the moment, Our researchers hone in on the top tier of this group, around 850 funds. Most estimates calculate that this group of people orchestrate the majority of all hedge funds’ total asset base, and by keeping an eye on their top picks, Insider Monkey has determined a number of investment strategies that have historically beaten the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .
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 15 best blue chip stocks 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Now let’s take a gander at the new hedge fund action surrounding America Movil SAB de CV (NYSE:AMX).
Do Hedge Funds Think AMX Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2020, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 36% from the second quarter of 2020. On the other hand, there were a total of 11 hedge funds with a bullish position in AMX a year ago. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
Among these funds, Renaissance Technologies held the most valuable stake in America Movil SAB de CV (NYSE:AMX), which was worth $44.8 million at the end of the third quarter. On the second spot was Oaktree Capital Management which amassed $34.1 million worth of shares. GLG Partners, Marshall Wace LLP, and Millennium Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Moon Capital allocated the biggest weight to America Movil SAB de CV (NYSE:AMX), around 1.16% of its 13F portfolio. Oaktree Capital Management is also relatively very bullish on the stock, earmarking 0.74 percent of its 13F equity portfolio to AMX.
Consequently, specific money managers have jumped into America Movil SAB de CV (NYSE:AMX) headfirst. Oaktree Capital Management, managed by Howard Marks, assembled the most valuable position in America Movil SAB de CV (NYSE:AMX). Oaktree Capital Management had $34.1 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $16.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, John W. Moon’s Moon Capital, and Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital).
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as America Movil SAB de CV (NYSE:AMX) but similarly valued. We will take a look at Applied Materials, Inc. (NASDAQ:AMAT), Vale SA (NYSE:VALE), ABB Ltd (NYSE:ABB), U.S. Bancorp (NYSE:USB), Mercadolibre Inc (NASDAQ:MELI), Global Payments Inc (NYSE:GPN), and Northrop Grumman Corporation (NYSE:NOC). This group of stocks’ market values are closest to AMX’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 47.9 hedge funds with bullish positions and the average amount invested in these stocks was $3153 million. That figure was $132 million in AMX’s case. Mercadolibre Inc (NASDAQ:MELI) is the most popular stock in this table. On the other hand ABB Ltd (NYSE:ABB) is the least popular one with only 13 bullish hedge fund positions. America Movil SAB de CV (NYSE:AMX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for AMX is 36.9. 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. 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 December 14th and still beat the market by 15.8 percentage points. A small number of hedge funds were also right about betting on AMX as the stock returned 13.9% since the end of the third quarter (through 12/14) and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.