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The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Grupo Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) based on those filings.
Is OMAB stock a buy? Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) shareholders have witnessed a decrease in activity from the world's largest hedge funds of late. Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) was in 4 hedge funds' portfolios at the end of the first quarter of 2021. The all time high for this statistic is 7. There were 5 hedge funds in our database with OMAB positions at the end of the fourth quarter. Our calculations also showed that OMAB isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Israel Englander of Millennium Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $27 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we're going to take a look at the latest hedge fund action surrounding Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB).
Do Hedge Funds Think OMAB Is A Good Stock To Buy Now?
At Q1's end, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from the previous quarter. The graph below displays the number of hedge funds with bullish position in OMAB over the last 23 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies, holds the biggest position in Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB). Renaissance Technologies has a $24.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies's heels is Millennium Management, led by Israel Englander, holding a $4.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions comprise Ken Griffin's Citadel Investment Group, Greg Eisner's Engineers Gate Manager and . In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB), around 0.03% of its 13F portfolio. Engineers Gate Manager is also relatively very bullish on the stock, dishing out 0.01 percent of its 13F equity portfolio to OMAB.
Judging by the fact that Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) has witnessed a decline in interest from the smart money, it's safe to say that there was a specific group of fund managers who were dropping their full holdings last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital dumped the biggest position of the "upper crust" of funds followed by Insider Monkey, totaling about $2.1 million in stock, and Paul Marshall and Ian Wace's Marshall Wace LLP was right behind this move, as the fund dropped about $1.1 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 1 funds last quarter.
Let's now review hedge fund activity in other stocks similar to Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB). We will take a look at Calix Inc (NYSE:CALX), Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), WW International, Inc. (NASDAQ:WW), ON24, Inc. (NYSE:ONTF), Piedmont Office Realty Trust, Inc. (NYSE:PDM), Vector Group Ltd (NYSE:VGR), and Edgewell Personal Care Company (NYSE:EPC). This group of stocks' market caps are similar to OMAB's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CALX,31,273135,6 SBGI,19,396417,-10 WW,28,466061,-4 ONTF,19,117781,19 PDM,13,81180,2 VGR,14,150484,0 EPC,20,235053,0 Average,20.6,245730,1.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.6 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $30 million in OMAB's case. Calix Inc (NYSE:CALX) is the most popular stock in this table. On the other hand Piedmont Office Realty Trust, Inc. (NYSE:PDM) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is even less popular than PDM. Our overall hedge fund sentiment score for OMAB is 21.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Hedge funds dodged a bullet by taking a bearish stance towards OMAB. Our calculations showed that the top 10 most popular hedge fund stocks returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 17.2% in 2021 through June 11th but managed to beat the market again by 3.3 percentage points. Unfortunately OMAB wasn't nearly as popular as these 5 stocks (hedge fund sentiment was very bearish); OMAB investors were disappointed as the stock returned 4.2% since the end of the first quarter (through 6/11) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.