Is Controladora Vuela Co Avcn SA CV (ADR) (VLRS) A Good Stock To Buy?

Consequently, specific money managers have been driving this bullishness. McKinley Capital Management, managed by Robert B. Gillam, assembled the biggest position in Controladora Vuela Co Avcn SA CV (ADR) (NYSE:VLRS). McKinley Capital Management had $5.9 million invested in the company at the end of the quarter. Rob Citrone’s Discovery Capital Management also made a $4.6 million investment in the stock during the quarter. The only other fund with a brand new VLRS position is Julian Robertson’s Tiger Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Controladora Vuela Co Avcn SA CV (ADR) (NYSE:VLRS) but similarly valued. We will take a look at Charles River Laboratories (NYSE:CRL), Leidos Holdings Inc (NYSE:LDOS), EPR Properties (NYSE:EPR), and YY Inc (ADR) (NASDAQ:YY). This group of stocks’ market valuations are similar to VLRS’s market valuation.

As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $212 million. That figure was $59 million in VLRS’s case. Charles River Laboratories (NYSE:CRL) is the most popular stock in this table. On the other hand EPR Properties (NYSE:EPR) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Controladora Vuela Co Avcn SA CV (ADR) (NYSE:VLRS) is even less popular than EPR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.