A market correction in the third quarter, spurred by a number of global macroeconomic concerns ended up having a negative impact on the markets and many hedge funds as a result. The stocks of smaller companies were especially hard hit during this time as investors fled to investments seen as being safer. We also received indications that hedge funds were trimming their positions amid the market volatility and uncertainty, and given their greater inclination towards smaller cap stocks than other investors, it follows that a stronger sell-off occurred in those stocks. Let’s study the hedge fund sentiment to see how those concerns affected their ownership of Constellation Brands, Inc. (NYSE:STZ) during the quarter.
Is Constellation Brands, Inc. (NYSE:STZ) worth your attention right now? Money managers are turning bullish. The number of bullish hedge fund positions inched up by three during the last three months of 2015. STZ was in 67 hedge funds’ portfolios at the end of December. There were 64 hedge funds in our database with STZ holdings at the end of the previous quarter. At the end of this article we will also compare STZ to other stocks including L Brands Inc (NYSE:LB), Marathon Petroleum Corp (NYSE:MPC), and HCA Holdings Inc (NYSE:HCA) to get a better sense of its popularity.
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One of the shareholders of Constellation Brands is activist Dan Loeb’s Third Point. In its second-quarter letter to investors, Third Point discussed Constellation Brands. Here’s what the fund said about the company: