What Do Hedge Funds Think of Companhia de Saneamento Basico (ADR) (SBS)?

Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. That’s why we pay special attention to hedge fund activity in these stocks.

Is Companhia de Saneamento Basico (ADR) (NYSE:SBS) a sound stock to buy now? Hedge funds are becoming less hopeful. The number of bullish hedge fund positions went down by 1 recently. At the end of this article we will also compare SBS to other stocks including Armstrong World Industries, Inc. (NYSE:AWI), Noble Corporation (NYSE:NE), and Compass Minerals International, Inc. (NYSE:CMP) to get a better sense of its popularity.

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With all of this in mind, we’re going to take a gander at the latest action encompassing Companhia de Saneamento Basico (ADR) (NYSE:SBS).

Hedge fund activity in Companhia de Saneamento Basico (ADR) (NYSE:SBS)

Heading into Q4, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Paul Singer’s Elliott Management has the number one position in Companhia de Saneamento Basico (ADR) (NYSE:SBS), worth close to $61.7 million, comprising 1.2% of its total 13F portfolio. Coming in second is Impax Asset Management, managed by Ian Simm, which holds a $14.3 million position; the fund has 1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors with similar optimism consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Millennium Management and David Costen Haley’s HBK Investments.