Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Interested in emerging markets? If so, here are some ideas to get you started.

We ran a screen on US-traded stocks from the BRIC countries (Brazil, Russia, India and China) for those seeing the most significant net institutional purchases over the current quarter. Institutional investors, such as hedge fund managers and mutual fund managers, are generally considered "smart money" investors because of their experience and access to sophisticated research.

We screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. TAL Education Group (XRS): Provides K-12 after-school tutoring services in the People's Republic of China. Market cap at $703.52M, most recent closing price at $9.08. Net institutional purchases in the current quarter at 10.2M shares, which represents about 34.49% of the company's float of 29.57M shares.

2. eLong Inc. (LONG): Operates as an online travel service provider in the People's Republic of China. Market cap at $540.88M, most recent closing price at $15.76. Net institutional purchases in the current quarter at 362.5K shares, which represents about 10.36% of the company's float of 3.50M shares.

3. RDA Microelectronics, Inc. (RDA): Designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Market cap at $430.97M, most recent closing price at $10.15. Net institutional purchases in the current quarter at 335.7K shares, which represents about 9.79% of the company's float of 3.43M shares.

4. NetEase.com, Inc. (NTES): Engages in the development of applications, services, and other technologies for the Internet in China. Market cap at $5.77B, most recent closing price at $44.05. Net institutional purchases in the current quarter at 7.1M shares, which represents about 9.72% of the company's float of 73.02M shares.

5. MakeMyTrip Limited (MMYT): Provides travel products and solutions in India and the United States. Market cap at $524.33M, most recent closing price at $14.11. Net institutional purchases in the current quarter at 979.5K shares, which represents about 7.85% of the company's float of 12.48M shares.

6. Mechel OAO (MTL): Operates as a mining and steel company in the Russian Federation and internationally. Market cap at $3.39B, most recent closing price at $6.10. Net institutional purchases in the current quarter at 7.6M shares, which represents about 5.29% of the company's float of 143.64M shares.

7. Sohu.com Inc. (SOHU): Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Market cap at $1.41B, most recent closing price at $37.05. Net institutional purchases in the current quarter at 1.6M shares, which represents about 5.38% of the company's float of 29.72M shares.

8. Sina Corp. (SINA): Provides online media and mobile value-added services (MVAS) in the People's Republic of China. Market cap at $3.15B, most recent closing price at $47.30. Net institutional purchases in the current quarter at 3.3M shares, which represents about 5.37% of the company's float of 61.50M shares.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: Hedge Funds Are Buying These 8 BRIC Stocks