Best Buy Co., Inc. (BBY) Down On Bank of America Double-Notch Downgrade; Hedge Funds Saw It Coming

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What does the smart money think about Best Buy Co., Inc. (NYSE:BBY)?

Of the funds tracked by Insider Monkey, AQR Capital Management, managed by Cliff Asness, holds the number one position in Best Buy Co., Inc. (NYSE:BBY), owning 5.91 million shares for a $223.2 million position in the stock, comprising 0.5% of its 13F portfolio. On AQR Capital Management’s heels is Ivory Capital (Investment Mgmt), led by Curtis Macnguyen, holding a $79 million position made up of 2.09 million shares; 1.9% of its 13F portfolio is allocated to the company. Other members of the smart money with similar optimism include David Harding’s Winton Capital Management, Phill Gross and Robert Atchinson’s Adage Capital Management, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Since Best Buy Co., Inc. (NYSE:BBY) has seen declining sentiment from the entirety of the hedge funds we track, there were a few fund managers that decided to sell off their positions entirely by the end of the first quarter. It’s worth mentioning that Rob Citrone‘s Discovery Capital Management dumped the largest position of the “upper crust” of funds monitored by Insider Monkey, disposing of a position of call options underlying 1.08 million shares, worth close to $42.08 million. Bruce Kovner’s fund, Caxton Associates LP, also dropped its position of call options worth about $38.98 million.

Bank of America Merrill Lynch’s downgrade along with the bearish sentiment of hedge funds in the first quarter make a long position in Best Buy Co., Inc. (NYSE:BBY) appear to be an unwise decision at this point.

Disclosure: None

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