Is Frozen-Powered Dividend Increase Enough To Make Disney (DIS) A Buy?

What does the smart money think about The Walt Disney Company (NYSE:DIS)?

Heading into Q2, a total of 64 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes considerably.

According to hedge fund intelligence website Insider Monkey, Ken Fisher‘s Fisher Asset Management had the biggest position in The Walt Disney Company (NYSE:DIS), worth close to $881.3 million, corresponding to 1.8% of its total 13F portfolio. Sitting at the number two spot was Lansdowne Partners, led by Alex Snow, holding an $880.6 million position; 7.9% of its 13F portfolio. Other members of the smart money with similar optimism include Eric W. Mandelblatt’s Soroban Capital Partners, Phill Gross and Robert Atchinson‘s Adage Capital Management, and Tom Gayner’s Markel Gayner Asset Management.

As one would reasonably expect, some big names were leading the bulls’ herd. Laurion Capital Management, managed by Benjamin A. Smith, established the most valuable call position in The Walt Disney Company (NYSE:DIS). Laurion Capital Management had $156.1 million invested in the bullish position. John Armitage‘s Egerton Capital Limited also initiated a $64.7 million position during the quarter. The following funds were also among the new Disney investors: Alexander Mitchell’s Scopus Asset Management, Malcolm Fairbairn’s Ascend Capital, and Nick Niell’s Arrowgrass Capital Partners.

Given the bullish hedge fund sentiment and invaluable brands Disney owns, it’s hard to bet against this company right now. While it might be close to nearing the limits of its valuation at a nearly $200 billion market cap now, we still recommend a buy on the stock.

Disclosure: None