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Do you like to follow smart money buying trends? For a closer look at stocks currently favored by smart money institutional investors, we ran a screen.

We began by screening for US-traded stocks from the BRIC countries (Brazil, Russia, India, and China), which represent the major emerging markets. We screened these stocks for those that appear undervalued relative to earnings growth, with PEG below 1.

We then screened these names 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.

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

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $709.61M, most recent closing price at $16.13. China. PEG at 0.36. Net institutional purchases in the current quarter at 9.6M shares, which represents about 32% of the company's float of 30.00M shares.

2. CompanhiaBrasileira de Distribuicao (CBD): Operates as a retailer of food products, clothing, home appliances, and other products through its chain of hypermarkets, supermarkets, specialized and department stores, convenience stores, and the Internet in Brazil. Market cap at $12.24B, most recent closing price at $46.28. Brazil. PEG at 0.99. Net institutional purchases in the current quarter at 9.1M shares, which represents about 9.7% of the company's float of 93.81M shares.

3. ShangPharma Corporation (SHP): Operates as a pharmaceutical and biotechnology research and development outsourcing company. Market cap at $150.67M, most recent closing price at $8.03. China. PEG at 0.72. Net institutional purchases in the current quarter at 508.7K shares, which represents about 6.07% of the company's float of 8.38M shares.

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

Source: 3 Undervalued BRIC Stocks With Strong Hedge Fund Buying