1. Nestlé S.A. (OTC:NSRGY)
Russo’s Stake Value: $1,219,960,000
Percentage of Russo’s 13F Portfolio: 10.3%
Number of Hedge Fund Holders: 4
The stock ranking first on our list of the 5 European stocks to buy according to Tom Russo’s hedge fund is Nestlé S.A. (OTC:NSRGY), which is a Swiss multinational food and beverage megacorporation, headquartered in Vevey, Switzerland. It has remained the largest food company worldwide since 2014 by revenue. Nestlé S.A. (OTC:NSRGY) products include breakfast cereals, bottled water, baby formula, snacks, juices, and coffee, among others. The famous brands under Nestlé S.A. (OTC:NSRGY) are Nespresso, Nescafé, Kit Kat, Nesquik, Maggi, and more. The company is also a major shareholder in L’Oréal S.A. (OTC:LRLCY). Founded in 1866, Nestlé S.A. (OTC:NSRGY) products have become consumer staples worldwide, with 180 countries being served by the food and beverage conglomerate. Nestlé S.A. (OTC:NSRGY) has a market cap of $331.4 billion.
Russo’s hedge fund owns 9.78 million shares in Nestlé S.A. (OTC:NSRGY), amounting to $1.21 billion, and making up 10.3% of Russo’s 13F portfolio.
At the end of the second quarter of 2021, 4 hedge funds in Insider Monkey’s database held stakes amounting to $1.82 billion in Nestlé S.A. (OTC:NSRGY). This is compared to the same number of hedge funds in the previous quarter, with stakes worth $1.64 billion.
On October 1, analysts maintained an Overweight rating on Nestlé S.A. (OTC:NSRGY), raising the price target to $142.5 from $120.49. Out of the hedge funds tracked by Insider Monkey, Russo’s Gardner Russo & Gardner is the leading shareholder in Nestlé S.A. (OTC:NSRGY).
Semper Vic Partners, in its Q2 2021 investor letter, mentioned that Nestlé S.A. (OTC:NSRGY)’s shares are well-positioned in its portfolios based on the company’s global growth potential. Here is what the fund said:
“I believe that Nestlé shares are well-positioned in our portfolios based on its global growth potential. Nestlé’s global growth potential is a dividend from their trusted consumer brands’ 100-year command presence in over 100 countries. Over these years, Nestlé has developed trusted and cherished iconic brands. For instance, Nestlé has over 30 brands that have over $1 billion of annual turnover. Nestlé benefits from a vast Total Addressable Market (TAM)
available through developing and emerging market consumers shifting from subsistence economies to the introduction of market-based economies. Nestlé benefits from its market leadership in two key categories that evidence extremely high brand loyalty – global pet food/care and global premium coffee (led by Nestlé’s globally leading Nespresso)…” (Click here to see the full text)
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