Banco Bradesco SA (ADR) (NYSE:BBD) Fails To Impress Investors


The Brazilian real has plunged sharply in last few days, which further has shaken the stock price of Brazilian commercial entity Banco Bradesco SA (ADR) (NYSE:BBD). The chain reaction begun after two major officials in nation’s financial and political affairs were arrested on allegations of obstructing a probe into the nation’s wide-spread corruption, which has dampened the stocks of many Brazilian-based companies.

The change

With Banco Bradesco down by more than 50% this year and compensating a monthly payout with a yield of almost 6%, everyone is considering if it is a good time to invest in the stock. The company has witnessed a decline in support from the globe’s most reputed money managers in last some months.

Banco Bradesco was in eleven hedge funds’ portfolios at the end of last quarter. There were fifteen hedge funds with Banco Bradesco holdings at the close of the preceding quarter. The change and the level in hedge fund popularity are not the only variables that investors need to analyze to decode hedge funds’ outlooks.

The stance

A stock may experience a boost in popularity and may still be not popular compared to similarly priced stocks. Most of the traders perceive hedge funds as outdated and slow investment tools of past. While there are over 8,000 funds at present, the leaders group is form of just 700 funds.

Most experts predict that this group of people guide the lion’s stake of all hedge funds’ combined asset base.Heading into last quarter, a total of eleven of the leading hedge funds are long in Banco Bradesco SA (ADR) (NYSE:BBD) stock, over 25% decline from preceding quarter. With hedge funds’ shuffling their portfolio, there exists a group of eminent hedge fund managers who arepositive on the stock. As per publicly available institutional investor holdings and hedge fund data, Cliff Asness’ tops the list of fund manager bullish on Banco Bradesco.