Johnson & Johnson (JNJ) Sees Q2 Revenues, Profits Drop But Beats Expectations

Hedge fund activity in Johnson & Johnson (NYSE:JNJ)

When looking at the hedgies followed by Insider Monkey, Fisher Asset Management, led by Ken Fisher, holds the biggest position in Johnson & Johnson (NYSE:JNJ). Fisher Asset Management has a $1.05 billion position in the stock made up of 10.46 million shares, comprising 2.1% of its 13F portfolio. The second-most bullish hedge fund manager is Donald Yacktman of Yacktman Asset Management, with an $848.3 million position in 8.43 million shares; the fund manager has 3.9% of his 13F portfolio invested in the stock. Other members of the smart money that hold long positions comprise Cliff Asness’ AQR Capital Management, Phill Gross and Robert Atchinson’s Adage Capital Management, and David E. Shaw’s D.E. Shaw & Co., L.P.

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Hitchwood Capital Management, helmed by James Crichton, established the largest call position in Johnson & Johnson (NYSE:JNJ). Hitchwood Capital Management had $26.2 million invested in call options underlying 260,000 shares of company at the end of the first quarter. Gordy Holterman and Derek Dunn’s Overland Advisors also initiated a $15.1 million position of call options, underlying 150,000 shares. The other funds with new positions in the stock are Tony Chedraoui’s Tyrus Capital, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Due to the overall bearish sentiment from hedge funds coupled with the slump in both revenues and profits for the just-ended second quarter, we don’t recommend a long position in Johnson & Johnson (NYSE:JNJ) now.

Disclosure: None