Should You Buy Bancolombia S.A. (ADR) (CIB)?

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Is Bancolombia S.A. (ADR) (NYSE:CIB) a healthy stock for your portfolio? Money managers are becoming more confident. The number of bullish hedge fund positions rose by 2 recently.

To the average investor, there are plenty of metrics shareholders can use to watch Mr. Market. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform the S&P 500 by a significant margin (see just how much).

Just as key, optimistic insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are many incentives for a bullish insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).

With these “truths” under our belt, let’s take a look at the key action encompassing Bancolombia S.A. (ADR) (NYSE:CIB).

How have hedgies been trading Bancolombia S.A. (ADR) (NYSE:CIB)?

At Q1’s end, a total of 7 of the hedge funds we track held long positions in this stock, a change of 40% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.


According to our comprehensive database, Jim Simons’s Renaissance Technologies had the most valuable position in Bancolombia S.A. (ADR) (NYSE:CIB), worth close to $21.7 million, accounting for 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is D E Shaw, managed by D. E. Shaw, which held a $19.1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Mike Vranos’s Ellington.

As one would reasonably expect, specific money managers were breaking ground themselves. Renaissance Technologies, managed by Jim Simons, established the biggest position in Bancolombia S.A. (ADR) (NYSE:CIB). Renaissance Technologies had 21.7 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also initiated a $0.9 million position during the quarter. The only other fund with a brand new CIB position is Steven Cohen’s SAC Capital Advisors.

Insider trading activity in Bancolombia S.A. (ADR) (NYSE:CIB)

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the last 180-day time period, Bancolombia S.A. (ADR) (NYSE:CIB) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Bancolombia S.A. (ADR) (NYSE:CIB). These stocks are ICICI Bank Limited (ADR) (NYSE:IBN), Woori Finance Holdings Co., Ltd. (ADR) (NYSE:WF), Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG), Banco de Chile (ADR) (NYSE:BCH), and KB Financial Group, Inc. (ADR) (NYSE:KB). This group of stocks are the members of the foreign regional banks industry and their market caps match CIB’s market cap.

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