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Here is What Hedge Funds Think About Mondelez International Inc (NASDAQ:MDLZ)

Mondelez International Inc (NASDAQ:MDLZ) was in 59 hedge funds’ portfolio at the end of December. MDLZ has seen an increase in enthusiasm from smart money lately. There were 3 hedge funds in our database with MDLZ positions at the end of the previous quarter.

Mondelez (MDLZ)

If you’d ask most investors, hedge funds are viewed as slow, outdated investment tools of the past. While there are greater than 8000 funds in operation at the moment, we choose to focus on the bigwigs of this club, around 450 funds. It is estimated that this group controls most of the smart money’s total asset base, and by tracking their highest performing stock picks, we have determined a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Just as important, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. Obviously, there are a number of stimuli for an insider to cut shares of his or her company, but just one, very clear reason why they would buy. Several academic studies have demonstrated the impressive potential of this tactic if piggybackers understand where to look (learn more here).

Consequently, we’re going to take a glance at the latest action surrounding Mondelez International Inc (NASDAQ:MDLZ).

What have hedge funds been doing with Mondelez International Inc (NASDAQ:MDLZ)?

Heading into 2013, a total of 59 of the hedge funds we track were long in this stock, a change of 1867% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.

According to our comprehensive database, Mason Hawkins’s Southeastern Asset Management had the most valuable position in Mondelez International Inc (NASDAQ:MDLZ), worth close to $879 million, accounting for 3.9% of its total 13F portfolio. The second largest stake is held by Scout Capital Management, managed by James Crichton and Adam Weiss, which held a $702 million position; 3.9% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Boykin Curry’s Eagle Capital Management, Warren Buffett’s Berkshire Hathaway and Daniel S. Och’s OZ Management.

As one would reasonably expect, key money managers have jumped into Mondelez International Inc (NASDAQ:MDLZ) headfirst. Southeastern Asset Management, managed by Mason Hawkins, assembled the biggest position in Mondelez International Inc (NASDAQ:MDLZ). Southeastern Asset Management had 879 million invested in the company at the end of the quarter. James Crichton and Adam Weiss’s Scout Capital Management also initiated a $702 million position during the quarter. The other funds with brand new MDLZ positions are Boykin Curry’s Eagle Capital Management, Warren Buffett’s Berkshire Hathaway, and Daniel S. Och’s OZ Management.

How have insiders been trading Mondelez International Inc (NASDAQ:MDLZ)?

Bullish insider trading is most useful when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time frame, Mondelez International Inc (NASDAQ:MDLZ) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned studies, retail investors should always pay attention to hedge fund and insider trading sentiment, and Mondelez International Inc (NASDAQ:MDLZ) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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