Is The J.M. Smucker Company (SJM) Going to Burn These Hedge Funds?

Page 1 of 2

In the financial world, there are dozens of indicators shareholders can use to monitor publicly traded companies. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce the broader indices by a healthy margin (see just how much).

The J.M. Smucker Company (NYSE:SJM)

Just as useful, positive insider trading sentiment is another way to analyze the investments you’re interested in. As the old adage goes: there are a variety of motivations for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the useful potential of this strategy if “monkeys” understand what to do (learn more here).

Keeping this in mind, it’s important to analyze the latest info surrounding The J.M. Smucker Company (NYSE:SJM).

Hedge fund activity in The J.M. Smucker Company (NYSE:SJM)

At Q2′s end, a total of 20 of the hedge funds we track were long in this stock, a change of -9% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes meaningfully.

When using filings from the hedgies we track, John W. Rogers’s Ariel Investments had the most valuable position in The J.M. Smucker Company (NYSE:SJM), worth close to $60.6 million, comprising 1% of its total 13F portfolio. The second largest stake is held by David Harding of Winton Capital Management, with a $60.4 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Other peers that are bullish include Bernard Horn’s Polaris Capital Management, Cliff Asness’s AQR Capital Management and Jim Simons’s Renaissance Technologies.

Because The J.M. Smucker Company (NYSE:SJM) has faced dropping sentiment from the entirety of the hedge funds we track, we can see that there exists a select few funds that decided to sell off their full holdings at the end of the second quarter. Intriguingly, Chuck Royce’s Royce & Associates sold off the biggest position of the 450+ funds we watch, totaling about $32.1 million in stock, and Phill Gross and Robert Atchinson of Adage Capital Management was right behind this move, as the fund dumped about $15.1 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 2 funds at the end of the second quarter.

What have insiders been doing with The J.M. Smucker Company (NYSE:SJM)?

Insider buying is most useful when the company in question has experienced transactions within the past six months. Over the last half-year time frame, The J.M. Smucker Company (NYSE:SJM) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to The J.M. Smucker Company (NYSE:SJM). These stocks are Mead Johnson Nutrition CO (NYSE:MJN), ConAgra Foods, Inc. (NYSE:CAG), Campbell Soup Company (NYSE:CPB), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and McCormick & Company, Incorporated (NYSE:MKC). All of these stocks are in the processed & packaged goods industry and their market caps are closest to SJM’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!