We have been waiting for this for a year and finally the third quarter ended up showing a nice bump in the performance of small-cap stocks. Both the S&P 500 and Russell 2000 were up since the end of the second quarter, but small-cap stocks outperformed the large-cap stocks by double digits. This is important for hedge funds, which are big supporters of small-cap stocks, because their investors started pulling some of their capital out due to poor recent performance. It is very likely that equity hedge funds will deliver better risk adjusted returns in the second half of this year. In this article we are going to look at how this recent market trend affected the sentiment of hedge funds towards Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE), and what that likely means for the prospects of the company and its stock.
So, is Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) a buy here? The smart money is turning less bullish, as the number of long hedge fund positions went down by eight in the third quarter and there were 32 hedge funds in our database with CCE holdings at the end of September. At the end of this article we will also compare CCE to other stocks including Aramark (NYSE:ARMK), Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC), and Gartner Inc (NYSE:IT) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Now, we’re going to view the key action regarding Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE).
Hedge fund activity in Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE)
Heading into the fourth quarter of 2016, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, down by 20% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, JANA Partners, managed by Barry Rosenstein, holds the biggest position in Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE). JANA Partners has a $205.5 million position in the stock, comprising 3.6% of its 13F portfolio. The second largest stake is held by Ricky Sandler’s Eminence Capital, with a $107.6 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish include James Dinan’s York Capital Management, Israel Englander’s Millennium Management and Keith Meister’s Corvex Capital.