Hedge Funds Caught Off Guard As Mead Johnson Nutrition CO (MJN) Cuts Forecast

How are hedge funds trading Mead Johnson Nutrition CO (NYSE:MJN)?

When looking at the hedgies followed by Insider Monkey, York Capital Management, managed by James Dinan, holds the most valuable position in Mead Johnson Nutrition CO (NYSE:MJN) as of March 31. York Capital Management has a $245.1 million position in the stock, comprising 1.7% of its 13F portfolio. The second-largest stake is held by Citadel Investment Group, led by Ken Griffin, holding a $146.9 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Supporting members of the smart money that hold long positions include James Crichton’s Hitchwood Capital Management, Jim Simons‘ Renaissance Technologies, and Steve Cohen’s Point72 Asset Management.

Because Mead Johnson Nutrition CO (NYSE:MJN) has faced a declination in interest from hedge fund managers, we can see that there were a few money managers that decided to sell off their positions entirely in the first quarter. It’s worth mentioning that J Kevin Kenny Jr’s Emerging Sovereign Group dumped the biggest investment of all the hedgies tracked by Insider Monkey, valued at close to $108 million in stock. Tony Chedraoui of Tyrus Capital was right behind this move, as the fund cut about $16.8 million worth. These transactions are important to note, as aggregate hedge fund interest fell by four funds in the first quarter.

We would advise investors to stay clear of the stock owing to macroeconomic weakness in China (even if the Chinese government isn’t admitting to it) and lower overall hedge fund sentiment pertaining to the company, although some were very bullish.

Disclosure: None