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SYSCO Corporation (SYY): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

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SYSCO Corporation (NYSE:SYY) shareholders have witnessed an increase in support from the world’s most elite money managers of late.

To the average investor, there are a multitude of indicators investors can use to track their holdings. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can beat their index-focused peers by a significant amount (see just how much).

SYSCO Corporation (NYSE:SYY)

Equally as important, bullish insider trading sentiment is a second way to break down the world of equities. Obviously, there are a number of stimuli for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this strategy if investors understand where to look (learn more here).

With these “truths” under our belt, let’s take a peek at the key action surrounding SYSCO Corporation (NYSE:SYY).

How are hedge funds trading SYSCO Corporation (NYSE:SYY)?

In preparation for this quarter, a total of 20 of the hedge funds we track were bullish in this stock, a change of 33% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Yacktman Asset Management, managed by Donald Yacktman, holds the biggest position in SYSCO Corporation (NYSE:SYY). Yacktman Asset Management has a $1.069 billion position in the stock, comprising 5.5% of its 13F portfolio. Coming in second is Jean-Marie Eveillard of First Eagle Investment Management, with a $853.1 million position; 2.8% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Ric Dillon’s Diamond Hill Capital, David Blood and Al Gore’s Generation Investment Management and Ken Griffin’s Citadel Investment Group.

As one would reasonably expect, specific money managers have been driving this bullishness. Generation Investment Management, managed by David Blood and Al Gore, initiated the most valuable position in SYSCO Corporation (NYSE:SYY). Generation Investment Management had 118.5 million invested in the company at the end of the quarter. Mark Broach’s Manatuck Hill Partners also made a $16.7 million investment in the stock during the quarter. The following funds were also among the new SYY investors: John Overdeck and David Siegel’s Two Sigma Advisors, Douglas W. Case’s Advanced Investment Partners, and D. E. Shaw’s D E Shaw.

What have insiders been doing with SYSCO Corporation (NYSE:SYY)?

Insider trading activity, especially when it’s bullish, is most useful when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, SYSCO Corporation (NYSE:SYY) has seen zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to SYSCO Corporation (NYSE:SYY). These stocks are AMCON Distributing Co. (NYSEAMEX:DIT), Nash-Finch Company (NASDAQ:NAFC), Spartan Stores, Inc. (NASDAQ:SPTN), The Chefs Warehouse, Inc (NASDAQ:CHEF), and United Natural Foods, Inc. (NASDAQ:UNFI). This group of stocks are in the food wholesale industry and their market caps resemble SYY’s market cap.

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