Is Grupo Financero Sntdr Mxco SAB de CV ADR (BSMX) A Good Stock To Buy?

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Prince Street Capital Management, managed by David Halpert, created the most outsized position in Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX). Prince Street Capital Management had $1.7 million invested in the company at the end of the quarter. HighVista Strategies also made a $0.2 million investment in the stock during the quarter. The only other fund with a brand new BSMX position is Mike Vranos’s Ellington.

Let’s also examine hedge fund activity in other stocks similar to Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX). We will take a look at Bunge Ltd (NYSE:BG), American Water Works Co., Inc. (NYSE:AWK), Lennar Corporation (NYSE:LEN), and Juniper Networks, Inc. (NYSE:JNPR). All of these stocks’ market caps match BSMX’s market cap.

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $849 million. That figure was just $22 million in BSMX’s case. Lennar Corporation (NYSE:LEN) is the most popular stock in this table. On the other hand American Water Works Co., Inc. (NYSE:AWK) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX) is even less popular than AWK. 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.