Do Hedge Funds Love Yum! Brands, Inc. (YUM)?

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Eminence Capital, managed by Ricky Sandler, created the largest position in Yum! Brands, Inc. (NYSE:YUM). According to its latest 13F filing, the fund had $115 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also made a $113.3 million investment in the stock during the quarter. The other funds with brand new YUM positions are Rob Citrone’s Discovery Capital Management, Robert Pohly’s Samlyn Capital, and Rob Citrone’s Discovery Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Yum! Brands, Inc. (NYSE:YUM). These stocks are Avago Technologies Ltd (NASDAQ:AVGO), Prudential Financial Inc (NYSE:PRU), General Mills, Inc. (NYSE:GIS), and ACE Limited (NYSE:ACE). This group of stocks’ market values are similar to YUM’s market value.

As you can see these stocks had an average of 42 hedge funds with bullish positions and the average amount invested in these stocks was $1.78 billion. That figure was a whooping $5.05 billion in YUM’s case. Avago Technologies Ltd (NASDAQ:AVGO) is the most popular stock in this table. On the other hand General Mills, Inc. (NYSE:GIS) is the least popular one with only 30 bullish hedge fund positions. Yum! Brands, Inc. (NYSE:YUM) is not far behind Avago Technologies and, given the fact that it has attracted the biggest amount of the hedge funds’ money, we believe it could also be a good candidate for a long position. Further research is, however, necessary to find out whether any of the two stocks are worth adding to your portfolio.