Shoud You Add Conagra Brands, Inc. (CAG) to Your Portfolio?

As industrywide interest jumped, key hedge funds were breaking ground themselves. Third Point, managed by Dan Loeb, created the largest position in Conagra Brands, Inc. (NYSE:CAG). Third Point had $200.2 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also initiated a $52.3 million position between July and September. The other funds with brand new CAG positions are Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management, Anand Parekh’s Alyeska Investment Group, and Philip Hilal’s Clearfield Capital.

Let’s also examine hedge fund activity in other stocks similar to Conagra Brands, Inc. (NYSE:CAG). These stocks are ICICI Bank Limited (ADR) (NYSE:IBN), Credit Suisse Group AG (ADR) (NYSE:CS), Newmont Mining Corp (NYSE:NEM), and Illumina, Inc. (NASDAQ:ILMN). This group of stocks’ market valuations are closest to CAG’s market valuation.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $464 million. That figure was $2.77 billion in ConAgra’s case. Newmont Mining Corp (NYSE:NEM) is the most popular stock in this table. On the other hand Credit Suisse Group AG (ADR) (NYSE:CS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Conagra Brands, Inc. (NYSE:CAG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.