Five Mega Caps That Hedge Funds Love: Allergan, Wells Fargo & More

As one might figure, The Coca-Cola Co (NYSE:KO) is also very popular among institutional investors – and not just consumers. However, over the fourth quarter, the number of funds in our database long the stock fell by 5.5% to 51. However, the value of their holdings rose over the period, from $19.33 billion to $20.28 billion, as the stock gained more than 7% in value; these positions accounted for 10.9% of the company’s outstanding stock as of December 31. Once again, Berkshire Hathaway held the largest stake, comprising 400 million shares, worth about $17.18 billion.

Despite its maturity, The Coca-Cola Co (NYSE:KO) has managed to beat the market so far in 2016, having posted gains of more than 2.5%, versus the S&P’s 2% decline. Among the events driving the growth of the stock price, we could point out the 6.1% increase in the company’s dividend to $0.35 per share, which implies a yield of almost 3.2%.

International Business Machines Corp. (NYSE:IBM) also saw the number of funds in our database long the stock tumble over the fourth quarter, to 56 from 63, amid a 5.07% decline registered by the stock. In this way, the aggregate value of holdings of these funds decreased to $12.67 billion from $13.49 billion. Warren Buffett’s Berkshire Hathaway held the largest stake, comprising 81.03 million shares. David Harding’s Winton Capital Management trailed it by a wide margin with 1.41 million shares disclosed as of December 31.

A few days ago, International Business Machines Corp. (NYSE:IBM) made an acquisition that many called a game-changer. The company purchased Resilient Systems, which completes its IBM QRadar segment, and brings famed security expert Bruce Schneier to the company. Shares of IBM are up by more than 9.2% over the past month.

Finally, there’s Citigroup Inc (NYSE:C), which saw a 12.3% reduction in the number of funds bullish on the stock. By December 31, 106 funds in our database held long positions in the stock. Representing 6.5% of the company’s shares outstanding, these stakes were valued at $9.97 billion, while the largest position was owned by Boykin Curry’s Eagle Capital Management, which comprised 25.26 million shares, worth more than $1.3 billion.

With its stock down by more than 17% year-to-date, Citigroup Inc (NYSE:C) is shrinking. A lack of confidence in the Chinese market has led it to sell its 20% stake in Guangfa Bank for $3 billion, and trouble in its Latin American operations has forced it to wrap up its consumer banking operations in Argentina and Brazil – although its institutional businesses will remain unchanged.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.