Veeco Instruments Inc. (VECO), Archer Daniels Midland Company (ADM): Hugh Hendry’s Bullish Picks in a Bearish Environment (Plus His Top Pick)

In Archer Daniels Midland Company (NYSE:ADM), Hendry added 9,300 shares to his holding, a 21% from the previous quarter, giving him 52,070 total. Interesting, ADM was also relatively flat during the fourth quarter, and not responsible for Hendry’s large returns in October and November.

The grain processor, which transforms crops like corn, soybeans, and wheat, into other foodstuffs and food-derived products has also suffered in 2015, down 9.27%, after a fairly steady rise from the end of 2012 following the droughts in the U.S, up 74.35%. Despite that, analysts are bullish on the stock given rising commodity prices and decreasing production costs in the sector.

Regardless, the very poor early 2015 returns from his 4^th and 5^th largest positions at the end of the year seem to spell trouble for Hendry’s prospects thus far. Lastly, let’s look at Altria Group Inc (NYSE:MO), which remained Hendry’s most valuable position, despite slashing his holding by 10% during the quarter, selling off 8,700 shares to leave him with 75,200.

Altria Group Inc (NYSE:MO) was one of his shining lights during that strong October and November push, the newly opened position in the third quarter returning 9.17% during the first two months of the fourth, the finishing touches on a strong year for the tobacco and cigar manufacturer, which was rated as one of the best dividend bets in the middle of the year. Shares of the parent company of Philip Morris, John Middleton, and U.S Smokeless Tobacco Company were up 28.61% for the year.

Thankfully for Hendry, his best bet has enjoyed a strong 2015 as well, up 11%. Despite the push away from smoking in the U.S which hit competitor Reynolds American, Inc. (NYSE:RAI) particularly hard during the fourth quarter, with sales diving 5%, Altria has remained relatively stable. Fourth quarter results showed increased revenue of 2.9% from the same year-ago period as margins increased, and though cigarette sales continued to decline, there was a slight uptick in the sales of smokeless products. Altria holds about a 40% stake of the tobacco market in the U.S.

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