Five Consumer Non-Durable Companies Smart Money Likes

#3. Kraft Heinz Co (NASDAQ:KHC)

– Number of Hedge Fund Shareholders (as of June 30): 60

– Total Value of Hedge Funds’ Holdings (as of June 30): $31.29 Billion

There were 60 hedge funds followed by Insider Monkey with long positions in Kraft Heinz Co (NASDAQ:KHC) both at the end of the first and second quarter of 2016. Nonetheless, the value of those positions jumped by 9% quarter-over-quarter to $31.29 billion, mainly due to a 13% increase in the value of Kraft Heinz shares. Hence, some hedge fund vehicles actually trimmed their exposure to the food giant during the three months that ended June 30. In early August, analysts at Deutsche Bank upgraded the packaged food company to ‘Buy’ from ‘Hold’ and raised their price target on the stock to $103 from $85, saying that the company “continues to deliver impressive EBIT growth and margin expansion.” Furthermore, Deutsche Bank analysts believe Kraft Heinz represents “an attractive long-term story with industry-leading margins, solid market share positions across its portfolio, and a strategy currently emulated (with varying success) by a number of peers.” The food giant has seen its market capitalization spike by 21% since the start of the year. Warren Buffett’s Berkshire Hathaway was the owner of a whopping number of 325.63 million shares of Kraft Heinz Co (NASDAQ:KHC) at the end of the June quarter.

#2. Mondelez International Inc. (NASDAQ:MDLZ)

– Number of Hedge Fund Shareholders (as of June 30): 62

– Total Value of Hedge Funds’ Holdings (as of June 30): $6.68 Billion

The number of smart money investors from our system with equity stakes in Mondelez International Inc. (NASDAQ:MDLZ) dropped to 62 from 63 during the April-to-June period, whereas the value of those stakes jumped by 18% quarter-over-quarter to $6.68 billion. The increase was predominantly driven by a 13% gain in the value of Mondelez shares in the three-month period. Those 62 asset managers amassed nearly 10% of the company’s outstanding common stock. In mid-August, the maker of Oreo and Ritz crackers agreed to buy the global license for Cadbury-branded biscuits from Burton’s Biscuit Co. The deal comes shortly after chocolate maker Hershey Co (NYSE:HSY) rejected a $23 billion cash-and-stock offer from the maker of Oreo cookies. Burton’s factories will continue to make the Cadbury-branded biscuits. Although the terms of the transaction were not disclosed, media reports value the deal at approximately $260 million. Mondelez shares are 4% in the red thus far in 2016. Bill Ackman’s Pershing Square Capital Management L.P. reported owning 22.94 million shares of Mondelez International Inc. (NASDAQ:MDLZ) through the latest round of 13Fs.

#1. Constellation Brands Inc. (NYSE:STZ)

– Number of Hedge Fund Shareholders (as of June 30): 69

– Total Value of Hedge Funds’ Holdings (as of June 30): $6.28 Billion

There were 69 asset managers followed by Insider Monkey with equity investments in Constellation Brands Inc. (NYSE:STZ) at the end of the June quarter, as compared to 71 registered at the end of the March quarter. Nonetheless, the overall value of those equity investments rose by 15% quarter-over-quarter to $6.28 billion, mainly reflecting a 9% increase in the value of the company’s stock. The 69 hedge funds hoarded up 19% of the company’s total number of outstanding shares. In December, the leading international beverage alcohol company, which owns well-known brands such as Corona, Modelo and Pacifico, acquired U.S. craft brewer Ballast Point for $998.5 million net of cash acquired. With the nearly $1 billion-acquisition, the third-largest producer of beer for the U.S. market aims to strengthen its position in the high-end U.S. beer market. Constellation Brands has seen the value of its stock gain 16% since the start of the year. Dan Loeb’s Third Point LLC owns 2.00 million shares of Constellation Brands Inc. (NYSE:STZ) as of June 30.

Disclosure: None