The government requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on September 30th. We at Insider Monkey have made an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY) based on those filings.
Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY) has seen no change in enthusiasm from smart money in recent months. 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 Hornbeck Offshore Services, Inc. (NYSE:HOS), Lydall, Inc. (NYSE:LDL), and Straight Path Communications Inc (NYSEMKT:STRP) to gather more data points.
Follow Cresud Sociedad Anonima Comercial Inmobiliaria Financiera Y Agropecuaria (NASDAQ:CRESY)
Follow Cresud Sociedad Anonima Comercial Inmobiliaria Financiera Y Agropecuaria (NASDAQ:CRESY)
In the 21st century investor’s toolkit there are several signals shareholders employ to evaluate publicly traded companies. Two of the less utilized signals are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the top hedge fund managers can beat their index-focused peers by a significant margin (see the details here).
With all of this in mind, let’s take a look at the key action surrounding Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY).
How have hedgies been trading Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY)?
Heading into Q4, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, unchanged over the quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Richard Mashaal’s Rima Senvest Management has the most valuable position in Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY), worth close to $24.9 million, corresponding to 1.8% of its total 13F portfolio. Sitting at the No. 2 spot is Brevan Howard, led by Alan Howard, holding a $10.5 million position; the fund has 5.3% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism include Murray Stahl’s Horizon Asset Management, Ari Zweiman’s 683 Capital Partners and Mark T. Gallogly’s Centerbridge Partners.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.
Let’s check out hedge fund activity in other stocks similar to Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY). We will take a look at Hornbeck Offshore Services, Inc. (NYSE:HOS), Lydall, Inc. (NYSE:LDL), Straight Path Communications Inc (NYSEMKT:STRP), and Callon Petroleum Company (NYSE:CPE). This group of stocks’ market valuations are similar to CRESY’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HOS | 23 | 198883 | 3 |
| LDL | 12 | 38284 | 3 |
| STRP | 13 | 66192 | 1 |
| CPE | 15 | 36218 | 5 |
As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $85 million. That figure was $72 million in CRESY’s case. Hornbeck Offshore Services, Inc. (NYSE:HOS) is the most popular stock in this table. On the other hand Lydall, Inc. (NYSE:LDL) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY) is even less popular than LDL. 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.
