Billionaire David Harding’s Consumer Goods Picks Include Altria Group Inc (MO)

Page 1 of 2

We track hundreds of hedge funds’ quarterly 13F filings as part of our work developing investment strategies; we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year (learn more about our small cap strategy). We also like to analyze individual filings to search for any trends in how top managers are playing the markets, and potentially identify investment ideas for further research. When we looked through billionaire David Harding’s Winton Capital Management’s 13F, we saw a number of consumer goods stocks among the fund’s largest holdings. Read on for our quick take on Winton’s five largest consumers goods positions or see the full list of the fund’s stock picks.

Harding and his team’s largest holding by market value was their more than 590,000 shares of Kimberly Clark Corp (NYSE:KMB). The personal products company looks like an ideal defensive stock: its beta is essentially zero, reflecting no relationship to the broader economy, and its dividend yield is 3.3% at current prices. With a market cap of $38 billion, Kimberly-Clark is certainly well capitalized as well. We’d note that at this valuation the stock is priced for future growth, with trailing and forward earnings multiples of 21 and 16 respectively.

David HardingSpices and seasonings manufacturer McCormick & Company, Incorporated (NYSE:MKC) was another of Winton’s top picks with the filing disclosing ownership of over 670,000 shares. McCormick’s yield isn’t particularly high but it also stands out for a fairly low beta, at 0.4. While growth of both revenue and net income was quite modest in its most recent quarterly report (for the quarter ending in February) compared to the same period in the previous fiscal year, the valuation is fairly aggressive here with McCormick valued at a trailing P/E of 24. As a result we would avoid the stock.

The fund increased the size of its position in Colgate-Palmolive Company (NYSE:CL) by 72% to a total of about 340,000 shares. Colgate-Palmolive is another stock where markets are expecting earnings per share to increase considerably going forward, and even with Wall Street analysts calling for some improvements this year and next year the forward earnings multiple is 19. The company’s earnings have actually been down, going by recent reports, though it does fall in line with the other two stocks we’ve discussed here in terms of having a low beta (of 0.2).

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!