Constellation Brands, Inc. (STZ): Hedge Funds Are Snapping Up

Now, key hedge funds have been driving this bullishness. Tiger Eye Capital, managed by Ben Gambill, assembled the largest position in Constellation Brands, Inc. (NYSE:STZ). Tiger Eye Capital had $46.7 million invested in the company at the end of the fourth quarter. Clint Carlson’s Carlson Capital also made a $23.2 million investment in the stock during the quarter. The other funds with brand new STZ positions are Andrew Sandler’s Sandler Capital Management, Zach Schreiber’s Point State Capital, and Benjamin A. Smith’s Laurion Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Constellation Brands, Inc. (NYSE:STZ) but similarly valued. We will take a look at L Brands Inc (NYSE:LB), Marathon Petroleum Corp (NYSE:MPC), HCA Holdings Inc (NYSE:HCA), and Imperial Oil Limited (USA) (NYSEAMEX:IMO). This group of stocks’ market valuations match STZ’s market valuation.

As you can see these stocks had an average of 37 hedge funds with bullish positions and the average amount invested in these stocks was $2.11 billion. That figure was $5.35 billion in STZ’s case. HCA Holdings Inc (NYSE:HCA) is the most popular stock in this table. On the other hand Imperial Oil Limited (USA) (NYSEAMEX:IMO) is the least popular one with only eight bullish hedge fund positions. Constellation Brands, Inc. (NYSE:STZ) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HCA might be a better candidate to consider a long position.