Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Latest Developments Confirm Hedge Fund Sentiment on these Two Stocks

Page 1 of 2

McCormick & Company, Incorporated (NYSE:MKC) and ConAgra Foods Inc (NYSE:CAG) shares have opened on Thursday in opposite ways, with McCormick & Company losing ground and ConAgra Foods starting higher on the back of differing news regarding both companies. According to Insider Monkey’s data, these stocks’ moves this morning are consistent with how hedge funds view these firms.

Inflation Food Prices

But first, let’s take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand, the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith in large-cap stocks. In forward tests since August 2012, these top small-cap stocks beat the market by an impressive 60.4 percentage points, returning 118% (read more details here). Hence, a retail investor needs to isolate himself from the herd and take advantage of the best growth opportunities in the market by concentrating on small-cap stocks.

McCormick & Company, Incorporated (NYSE:MKC) is down by nearly 4% as it disappointed investors and industry observers alike with its latest quarterly results. Adjusted earnings declined by nearly 12% year-over-year to $109.7 million, or $0.85 per share, below the $0.87 per share expected by the Wall Street. Net sales of $1.06 billion, which increased by 2% on the year were in line with analysts’ expectations. In constant currency terms, sales increased by 6%. Foreign exchange headwinds, especially in the EMEA region, dented sales figures. EMEA consumer sales declined by 1%, but on a constant currency basis grew by 18%, the firm said. Consumers sales in the Americas and in the Asia-Pacific regions also increased by 2% and 3%, respectively. Adjusting for foreign exchange impacts, the consumer sales growth in these regions were 3% and 7% respectively.

Follow Mccormick & Co Inc (NYSE:MKC)
Trade (NYSE:MKC) Now!

Just as McCormick & Company, Incorporated (NYSE:MKC)’s shares have slumped in morning trading today, hedge fund sentiment also ebbed in the second quarter. The number of hedge funds from our database with long positions in the company was unchanged at 17, but the value of their holdings was trimmed by over 25% to $66.06 million, as the stock climbed by nearly 5% during the quarter. By the end of June, hedge funds owned less than 1% of all McCormick & Company shares. Cliff Asness’ AQR Capital Management owned the largest stake in this firm by the end of June, made up of 320,515 shares, up by 3% on the quarter, followed by Jim Simons’ Renaissance Technologies which cut its holding by 44% to 150,900 shares.

Meanwhile, ConAgra Foods Inc (NYSE:CAG) shares are up by less than 1% on the back of its announcement of a new efficiency plan, in which the firm expects at least $300 million in cost cuts. About $200 million of that figure is expected to come from job cuts, reduced overhead expenses and aggressive restructuring. The firm will lay off approximately 1,500 employees in the process. It will also move its headquarters to Chicago, Illinois from Omaha, Nebraska, planned in the summer of 2016. The efficiency plan follows the firm’s failed integration of private-label food maker Ralcorp, a division that will be sold. This follows a successful activist campaign by Barry Rosenstein’s JANA Partners, which pressured ConAgra to sell Ralcorp.

Barry Rosenstein
Barry Rosenstein
JANA Partners

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!