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.

Should You Buy The J.M. Smucker Company (SJM)?

Page 1 of 2

A market correction in the third quarter, spurred by a number of global macroeconomic concerns ended up having a negative impact on the markets and many hedge funds as a result. The stocks of smaller companies were especially hard hit during this time as investors fled to investments seen as being safer. This is evident in the fact that the Russell 2000 ETF underperformed the S&P 500 ETF by 14 percentage points between June 25 and the end of October. We also received indications that hedge funds were trimming their positions amid the market volatility and uncertainty, and given their greater inclination towards smaller cap stocks than other investors, it follows that a stronger sell-off occurred in those stocks. Let’s study the hedge fund sentiment to see how those concerns affected their ownership of The J.M. Smucker Company (NYSE:SJM) during the quarter.

Is The J.M. Smucker Company (NYSE:SJM) a buy here? Investors who are in the know are taking an optimistic view. The number of long hedge fund positions went up by 17 lately. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Rockwell Automation (NYSE:ROK), Seagate Technology PLC (NASDAQ:STX), and Molson Coors Brewing Company (NYSE:TAP) to gather more data points.

Follow J M Smucker Co
Trade (SJM) Now!

In today’s marketplace there are tons of signals market participants employ to evaluate stocks. A couple of the most underrated signals are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace their index-focused peers by a superb amount (see the details here).

With all of this in mind, let’s take a glance at the fresh action regarding The J.M. Smucker Company (NYSE:SJM).

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

Heading into Q4, a total of 47 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 57% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Daniel S. Och’s OZ Management has the largest position in The J.M. Smucker Company (NYSE:SJM), worth close to $314.9 million, accounting for 1.1% of its total 13F portfolio. The second most bullish fund manager is Senator Investment Group, led by Doug Silverman and Alexander Klabin, holding a $165.4 million position; the fund has 2% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions contain Ricky Sandler’s Eminence Capital, Dan Loeb’s Third Point and John Brennan’s Sirios Capital Management.

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...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!