It already common knowledge that there is no single correct strategy of picking high-potential stocks, but there are some ways through which investors could narrow down the pool of stocks they are interested in. Although choosing stocks based solely on specific criteria inputs seems to be a good idea when it comes to narrowing down search horizons, this method can either generate too many options or eliminate some high-potential investment opportunities. Instead, retail investors could examine the basket of stocks that receive the most attention from the hedge fund industry. It is true that the hedge fund industry as a whole has underperformed in the past several years, but the smart money can actually help individual investors find good stocks. Image for a second that a stock was owned by only 10 hedge funds at the end of September 2015 and then an additional 25 hedge funds initiated positions in that stock during the subsequent three months. This probably means that either the stock was so heavily battered by the market that it reached an extremely cheap price level or the stock was accompanied by some firm-specific developments or even industry-wide developments that caught hedge funds’ attention. Having said that, it would be worthwhile to take a look at the hedge fund sentiment on Mondelez International Inc. (NASDAQ:MDLZ) to identify whether reputable and successful top money managers continue to believe in its potential.
Is Mondelez International Inc (NASDAQ:MDLZ) a sound investment today? The best stock pickers are becoming less hopeful. The number of long hedge fund bets decreased by 12 in recent months. At the end of this article we will also compare MDLZ to other stocks, including Costco Wholesale Corporation (NASDAQ:COST), China Petroleum & Chemical Corp (ADR) (NYSE:SNP), and Ambev SA (ADR) (NYSE:ABEV) to get a better sense of its popularity.
In the eyes of most market participants, hedge funds are perceived as unimportant, outdated investment tools of yesteryear. While there are over 8000 funds trading today, We look at the top tier of this club, around 800 funds. These investment experts administer most of all hedge funds’ total asset base, and by keeping an eye on their highest performing stock picks, Insider Monkey has unsheathed a few investment strategies that have historically outperformed the broader indices. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Mondelez International Inc. (NASDAQ:MDLZ) is one the largest snack companies in the world that manufactures and sells snack food and beverage products in 165 countries around the globe. The company’s portfolio of products includes Nabisco, Oreo and LU biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum, along with an additional 51 brands. The maker of Oreo biscuits has seen its shares advance 22% over the past 12 months despite losing 6% since the beginning of 2016. Mondelez International’s net revenues in 2015 were $29.64 billion, down from $34.24 billion reported for 2014. This significant decrease was mainly driven by the strengthening U.S. dollar against most currencies around the globe. To prove my aforementioned point, the company’s organic net revenue grew 3.7% year-on-year in 2015, after registering a growth of 2.5% in the prior year.
Now, we’re going to take a look at the key action surrounding Mondelez International Inc (NASDAQ:MDLZ), as well as discuss Bill Ackman‘s thoughts on Mondelez.