Is Smart Money Betting on Fomento Economico Mexicano SAB (ADR) (FMX)?

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Driehaus Capital established the largest position in Fomento Economico Mexicano SAB (ADR) (NYSE:FMX), as it had $24.4 million invested in the company at the end of the quarter. Howard Marks’ Oaktree Capital Management also initiated a $23 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) but similarly valued. We will take a look at Visa Inc (NYSE:V), Merck & Co., Inc. (NYSE:MRK), The Home Depot, Inc. (NYSE:HD), and The Walt Disney Company (NYSE:DIS). This group of stocks’ market values match FMX’s market value.

As you can see these stocks had an average of 80 hedge funds with bullish positions and the average amount invested in these stocks was $5.56 billion. That figure was just $208 million in FMX’s case. Visa Inc (NYSE:V) is the most popular stock in this table. On the other hand The Walt Disney Company (NYSE:DIS) is the least popular one with only 51 bullish hedge fund positions. Compared to these stocks Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) is even less popular than The Walt Disney Company (NYSE:DIS). 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.

Disclosure: None