Green Mountain Coffee Roasters Inc. (GMCR): This Metric Told You To Buy. Did You Listen?

Page 1 of 2

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) was in 26 hedge funds’ portfolio at the end of Q2, the latest round of 13F data on record. This is a 2-fund increase over the previous quarter, and while it seems minor, an augmented level of aggregate hedge fund interest should be taken as a serious bullish indicator.

If you’d ask most investors, hedge funds are perceived as worthless, outdated investment vehicles of the past. While there are greater than 8000 funds in operation at the moment, we hone in on the top tier of this club, close to 450 funds. It is widely believed that this group has its hands on most of the smart money’s total capital, and by keeping an eye on their best equity investments, we have determined a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (check out a sample of our picks).

Equally as beneficial, optimistic insider trading activity is another way to break down the investments you’re interested in. Obviously, there are many incentives for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).

Keeping this in mind, let’s take a look at the key action encompassing Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR).

Hedge fund activity in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)

In preparation for this quarter, a total of 26 of the hedge funds we track were bullish in this stock, a change of 8% from the previous quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were upping their stakes significantly.

Green Mountain Coffee Roasters Inc. (GMCR)

Of the funds we track, Coatue Management, managed by Philippe Laffont, holds the largest position in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). Coatue Management has a $229.5 million position in the stock, comprising 2.5% of its 13F portfolio. On Coatue Management’s heels is Water Street Capital, managed by Gilchrist Berg, which held a $149.2 million position; the fund has 4.8% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Edward Goodnow’s Goodnow Investment Group, and D. E. Shaw’s D E Shaw.

Now, specific money managers were leading the bulls’ herd. Coatue Management, managed by Philippe Laffont, assembled the most outsized position in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). Coatue Management had 229.5 million invested in the company at the end of the quarter. Gilchrist Berg’s Water Street Capital also initiated a $149.2 million position during the quarter. The following funds were also among the new GMCR investors: Edward Goodnow’s Goodnow Investment Group, Matthew Hulsizer’s PEAK6 Capital Management, and D. E. Shaw’s D E Shaw.

How have insiders been trading Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)?

Insider buying is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the last 180-day time frame, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has experienced 1 unique insiders buying, and 12 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). These stocks are Campbell Soup Company (NYSE:CPB),¬†Ingredion Inc (NYSE:INGR), The J.M. Smucker Company (NYSE:SJM), and McCormick & Company, Incorporated (NYSE:MKC). All of these stocks are in the processed & packaged goods industry and their market caps are similar to GMCR’s market cap.

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 Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

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!