Are Shares of Keurig Green Mountain Inc (GMCR) Worth Buying after Its 28% Dip?

How have ‘hedgies’ been trading Keurig Green Mountain Inc (NASDAQ:GMCR)?

Among the 700+ hedge funds tracked by Insider Monkey, Bill Miller‘s Legg Mason Capital Management held the largest position in Keurig Green Mountain Inc (NASDAQ:GMCR), which contained 938,000 shares worth $104.9 million at the end of March. It is worth nothing that Legg Mason Capital Management has doubled its holding in the stock during the first three months. On the second spot is Owl Creek Asset Management, led by Jeffrey Altman, which initiated a stake with around 708,000 shares worth $79.1 million. Moreover, Ken Griffin’s Citadel Investment Group has increased its holding by 151% to 429,000 shares during the same period.

On the other side, Patrick McCormack’s Tiger Consumer Management and Paul Orlin and Alex Porter’s Amici Capital opted to close their stakes as they sold around 359,500 shares and 105,ooo shares during the first three months of 2015.

To sum up, despite an inflow of capital, the majority of hedge funds with long positions in Keurig Green Mountain did not allocate significant portions of their equity portfolio into the stock, which shows that they weren’t bullish on the company. Considering today’s dip and the 60% decline year-to-date, hedge funds’ sentiment is justified. However, it might be the case that with the price declining, more investors will buy shares of the company betting on its recovery.

Disclosure: None