Mondelez International Inc (MDLZ), The Coca-Cola Company (KO): Billion-Dollar Hedge Fund Focused

Fourth of this top five is The Coca-Cola Company (NYSE:KO), another new addition according to the latest 13F filing.  Although Coca-Cola Company (NYSE:KO) continues to be dogged by competition from PepsiCo, Inc. (NYSE:PEP) in the carbonated beverage market, Coca-Cola Company (NYSE:KO)’s extensive market reach and global brand recognition makes it to consumer goods what NIKE, Inc. (NYSE:NKE) is to athletic wear. But why would Bryn Mawr add Coke shares to its portfolio now?  Could it have been because a NY State Supreme Court Judge in NY overturned Bloomberg’s ban on the sale of soda more than 16oz?  Perhaps, but more likely, it’s because Coca-Cola Company (NYSE:KO)’s stock has been posting consistent revenue and earnings growth. The company’s most recent earnings report shows that Coca-Cola Company (NYSE:KO)’s bottom line has improved 4% to $9 billion.

And finally, there is Everest Re Group Ltd (NYSE:RE).  The stock had a very strong start to 2013 after strong 2Q 2012 earnings, but has since leveled off at $130.60 after unimpressive 4Q earnings.  The reinsurer has been undermined by market pressure on insurers from 2012 storms as well as an 8% drop in new premiums.  Further technical pressure is causing the stock to move into a new trading range at $122-$125.  Since adding Everest Re Group Ltd (NYSE:RE) during the third quarter of last year, Bryn Mawr has increased its position by 777%.

There is certainly some consistency to the choices made by the fund managers at Bryn Mawr Capital Management, focusing on the financial sector and consumer goods.  Looking at the remaining positions in the fund, we can see that it is clearly focused on banking and insurance stocks as well as companies such as Philip Morris International Inc. (NYSE:PM), Hershey Co (NYSE:HSY), and Hillshire Brands Co (NYSE:HSH). This sector-investing strategy can be somewhat myopic, but Bryn Mawr has found some gems within these markets. See the rest of the fund’s stock picks here.

Disclosure: none