Petroleo Brasileiro Petrobras SA (ADR) (PBR) Down Another 3.67%; Is It Time To Give Up?

What have hedge funds been doing with Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)?

Heading into the second quarter, a total of 35 of the hedge funds tracked by Insider Monkey were bullish in this stock, a decline of 8% from the fourth quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings significantly.

According to hedge fund experts at Insider Monkey, Daniel S. Och’s OZ Management had the biggest position in Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), worth close to $135.9 million, corresponding to 0.4% of its total 13F portfolio. The second-largest stake is held by Senator Investment Group, led by Doug Silverman and Alexander Klabin, holding a $123.2 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Other peers that are bullish consist of Rob Citrone’s Discovery Capital Management, and Ken Fisher’s Fisher Asset Management.

Because Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedge funds who sold off their full holdings at the end of the first quarter. It’s worth mentioning that Jim Simons’ Renaissance Technologies said goodbye to the biggest stake of all the hedgies watched by Insider Monkey, comprising close to $72 million in stock. Randall Smith’s fund, Alden Global Capital, also dropped its stock, about $47.5 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by three funds at the end of the first quarter.

To conclude, Petrobras, even if struggling with debt, difficult oil prices, and corruption, might have been punished a bit too harshly on the exchange in recent days, and we hold to our position that Petrobras is a solid company to invest in for the investor with a longer horizon, who won’t panic at the first signs of negative volatility (like today).

Disclosure: None