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Five Alcohol Stocks That Hedge Funds Are Betting On

#3 Anheuser Busch Inbev SA (ADR) (NYSE:BUD)

Investors with Long Positions (as of September 30): 49

Aggregate Value of Investors’ Holdings (as of September 30): $5.34 Billion

The $195 billion brewer is currently seeking regulatory approval for its $108 billion merger with SABMiller, a marriage of the world’s two largest brewers that has raised questions about the survival of other craft brewers in the market. However, the management of the two companies argues that he purpose of this transaction is not to put other brewers in U.S. out of business, but to position themselves better for new markets in Africa, Asia, and Central and South America. The total number of hedge funds backing Anheuser Busch Inbev SA (ADR) (NYSE:BUD) grew by eight during the July-September period, while the value of their total holdings increased by 23%. Soroban Capital Partners, managed by Eric W. Mandelblatt, owns about 9.14 million shares of Anheuser Busch Inbev SA (ADR) (NYSE:BUD).

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#2 Constellation Brands, Inc. (NYSE:STZ)

Investors with Long Positions (as of September 30): 64

Aggregate Value of Investors’ Holdings (as of September 30): $4.87 Billion

Constellation Brands, Inc. (NYSE:STZ)’s stock price has rocketed by nearly 42% so far this year. Cowen & Co recently upgraded the company to ‘Outperform’ from ‘Market Perform’ and raised the price target to $170 from $135. During the third quarter the total number of hedge funds with exposure to the company increased by two while the value of their holdings jumped by 17%. Michael Lowenstein‘s Kensico Capital owns about 6.63 million shares of Constellation Brands, Inc. (NYSE:STZ) valued at $829.91 million.

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#1 Molson Coors Brewing Company (NYSE:TAP)

Investors with Long Positions (as of September 30): 70

Aggregate Value of Investors’ Holdings (as of September 30): $3.07 Billion

The $16.94 billion brewer recently entered into a definitive agreement with Anheuser Busch Inbev SA (ADR) (NYSE:BUD) to acquire SABMiller’s 58% stake in MillerCoors for $12 billion if the AB InBev’s own merger with SABMiller goes through. MillerCoors was formed as a joint venture between SABMiller and Molson Coors in 2008 in an attempt to better compete with AB InBev. During the third trimester the number of funds holding Molson Coors Brewing Company (NYSE:TAP) rose by four, while the total value of their holdings increased by $960 million. The company’s stock price has registered gains of more than 25% since the beginning of this year. Mason Capital Management, led by Kenneth Mario Garschina, owns about 3.55 million shares of Molson Coors Brewing Company (NYSE:TAP).

Disclosure: None

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