Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) in this article.
Is Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) an attractive investment today? Money managers are getting less optimistic. The number of bullish hedge fund bets shrunk by 1 recently. CBD was in 8 hedge funds’ portfolios at the end of the third quarter of 2015. There were 9 hedge funds in our database with CBD positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Radian Group Inc (NYSE:RDN), Corelogic Inc (NYSE:CLGX), and ENSCO PLC (NYSE:ESV) to gather more data points.
According to most shareholders, hedge funds are assumed to be worthless, old investment vehicles of the past. While there are greater than 8000 funds with their doors open at present, We choose to focus on the elite of this group, about 700 funds. Most estimates calculate that this group of people manage the lion’s share of the smart money’s total asset base, and by tracking their unrivaled investments, Insider Monkey has discovered a few investment strategies that have historically outpaced the broader indices. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
With all of this in mind, let’s take a gander at the fresh action surrounding Companhia Brasileira de Distrib. (ADR) (NYSE:CBD).
What have hedge funds been doing with Companhia Brasileira de Distrib. (ADR) (NYSE:CBD)?
At the end of the third quarter, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decline of 11% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ken Fisher’s Fisher Asset Management has the largest position in Companhia Brasileira de Distrib. (ADR) (NYSE:CBD), worth close to $16 million, corresponding to less than 0.1% of its total 13F portfolio. The second largest stake is held by AQR Capital Management, led by Cliff Asness, holding an $4.5 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that are bullish comprise Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Glenn Russell Dubin’s Highbridge Capital Management.