Does Pinnacle Foods Inc (NYSE:PF) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.
In Pinnacle Foods Inc (NYSE:PF)’s case, the company registered an increase in popularity as the number of bullish hedge fund bets increased by eight to 41 during the third quarter. However, the level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Carter’s, Inc. (NYSE:CRI), Six Flags Entertainment Corp (NYSE:SIX), and Servicemaster Global Holdings Inc (NYSE:SERV) to gather more data points.
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Keeping this in mind, we’re going to take a look at the latest action surrounding Pinnacle Foods Inc (NYSE:PF).
How have hedgies been trading Pinnacle Foods Inc (NYSE:PF)?
A total of 41 funds tracked by Insider Monkey held long positions in Pinnacle Foods at the end of the third quarter, up by 24% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, David Cohen and Harold Levy’s Iridian Asset Management holds the biggest position in Pinnacle Foods Inc (NYSE:PF). Iridian Asset Management has a $263.3 million position in the stock, comprising 2.3% of its 13F portfolio. Coming in second is Levin Capital Strategies, managed by John A. Levin, which holds a $210.4 million position; the fund has 3.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions consist of Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group, and Clint Carlson’s Carlson Capital.
As one would reasonably expect, key money managers have jumped into Pinnacle Foods Inc (NYSE:PF) headfirst. Iridian Asset Management initiated the most valuable position in Pinnacle Foods Inc (NYSE:PF) and was followed by Principal Global Investors’s Columbus Circle Investors, which also made a $29.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Josh Resnick’s Jericho Capital Asset Management, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and Solomon Kumin’s Folger Hill Asset Management.
Let’s now review hedge fund activity in other stocks similar to Pinnacle Foods Inc (NYSE:PF). These stocks are Carter’s, Inc. (NYSE:CRI), Six Flags Entertainment Corp (NYSE:SIX), Servicemaster Global Holdings Inc (NYSE:SERV), and Copart, Inc. (NASDAQ:CPRT). All of these stocks’ market caps match PF’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CRI | 35 | 1037585 | -3 |
| SIX | 28 | 1041188 | -4 |
| SERV | 36 | 1305900 | 4 |
| CPRT | 34 | 349162 | 8 |
As you can see these stocks had an average of 33 funds with bullish positions and the average amount invested in these stocks was $933 million. That figure was $1.45 billion in PF’s case. Servicemaster Global Holdings Inc (NYSE:SERV) is the most popular stock in this table. On the other hand Six Flags Entertainment Corp (NYSE:SIX) is the least popular one with only 28 investors long its stock. Compared to these stocks Pinnacle Foods Inc (NYSE:PF) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
