Hedge Funds Are Betting on These Five Packaged Foods Stocks

#3 J M Smucker Co (NYSE:SJM)

– Number of Hedge Fund Holders (as of September 30): 47
– Total Value of Hedge Fund Holdings (as of September 30): $1.58 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 11.50%

The smart money is becoming more bullish on J M Smucker Co (NYSE:SJM). A total of 47 funds from our database were long J M Smucker shares (amassing 11.5% of the company’s stock) at the end of the third quarter, up from 30 funds a quarter earlier. Among the funds that increased their positions are John W. Rogers’ Ariel Investments and Ricky Sandler’s Eminence Capital. Given that the stock recently broke above a key technical level and trade at a reasonable 19 times forward earnings estimates, J M Smucker shares have more upside ahead.

#2 Kraft Heinz Co (NASDAQ:KHC)

– Number of Hedge Fund Holders (as of September 30): 56
– Total Value of Hedge Fund Holdings (as of September 30): $25.99 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 30.40%

Because Kraft Foods and Heinz recently merged to form Kraft Heinz Co (NASDAQ:KHC), the company has considerable synergies that management hasn’t unlocked yet. The company’s management estimates that Kraft Heinz has an annual cost efficiency and synergies opportunity of around $1.5 billion that the company can realize by 2018. Shareholders can afford to wait, as the stock also pays a 3.25% dividend yield. Warren Buffett’s Berkshire Hathaway is one of the top shareholders of the company, owning 325.63 million shares.