Candlestick Capital’s Top 5 Stock Holdings

Below are the Candlestick’s top 5 stock holdings. For our discussion and a comprehensive list see Candlestick Capital’s Top 10 Stock Holdings.

5. Post Holdings, Inc. (NYSE: POST)

Candlestick Capital Management has initiated a position in Post Holdings, Inc. (NYSE: POST) during the final quarter of 2019 and the hedge fund has raised its stake by 33% in the September quarter of last year. It is the fifth-largest stock holding of Candlestick’s 13F portfolio, accounting for 2.12% of the overall portfolio.

Post Holdings underperformed in the last twelve months due to negative revenue growth. Its shares are down 8.37% in the last twelve months.

First Eagle Investment Management believes that Post Holdings shares are trading at discount. Here is what First Eagle Investment Management stated in an investors letter:

“Post detracted in the quarter, as the company’s prepared-egg business—which historically has primarily served fast-food customers such as McDonalds—has been hurt in the near term by the pandemic. The company has temporarily shifted some of its egg production to retail supermarkets given the strong demand and is also seeing very solid demand for much of the remainder of its food portfolio, including cereals, frozen meals and shelf-stable protein shakes. We continue to believe the shares of Post are undervalued based on our estimate of their intrinsic value.”