Five Beverage Stocks Hedge Funds Like

The popularity of Molson Coors Brewing Company (NYSE:TAP) plummeted during the fourth quarter, with many hedge fund managers seeking to offload their positions. At the end of December, 53 elite funds were invested in the stock, down from 70 at the end of September. While Ken Griffin‘s Citadel Investment Group was dumping the stock, having decreased its investment by 27% to 2.23 million shares, First Eagle Investment Management was buying left and right, boosting its stake in Molson Coors by 67% to 3.03 million shares worth $285 million at the end of December. In its latest quarterly report, Molson Coors Brewing Company (NYSE:TAP) posted revenues of $844.4 million and adjusted earnings of $0.49 per share, missing analysts’ estimates of $0.52 per share. The stock is currently trading around the $92 level, approximately where it was at the start of the year, having climbed back after a 13% decline. Molson Coors Brewing Company (NYSE:TAP) is set to take full control of its joint venture with SABMiller, MillerCoors. Molson Coors currently holds 41% of the venture and has agreed to acquire the remaining 51% for $12 billion upon the completion of the SABMiller-Anheuser merger.

Anheuser Busch Inbev SA (ADR) (NYSE:BUD) is another stock hedge funds were shying away from during the quarter. The number of long hedge fund positions (among the funds tracked by Insider Monkey) decreased to 36 by the end of December, or 4.5% of the funds tracked by Insider Monkey. In November 2015, Anheuser Busch reached an agreement to acquire one of its rivals, SABMiller, for $106 billion, a deal that would see the creation of a first mega brewer, responsible for roughly 30% of the world’s beer sales and with estimated annual revenues of $64 billion. There are some downsides, however, as Anheuser Busch was forced to divest certain brands from SAB Miller’s portfolio in Europe and China in order to meet regulatory approval. So far this year, the stock has been trending sideways and is currently down by approximately 5%. Contrary to the general opinion, Eric W. Mandelblatt‘s Soroban Capital Partners is still bullish on Anheuser Busch Inbev SA (ADR) (NYSE:BUD), having further increased its stake during the quarter to 10.9 million shares valued at $1.36 billion at the end of 2015.