Hedge Funds Are Pouring Money Into These Stocks

Let’s check out salesforce.com, inc. (NYSE:CRM) next, which was likely buoyed during the second quarter by the numerous takeover rumors swirling around it at that time, which cited Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NYSE:ORCL) as potential suitors. The number of hedge funds we track with salesforce positions leapt to 68 from 46, while the value of their holdings more than doubled to $1.85 billion from $903 million. salesforce.com, inc. (NYSE:CRM) shares were up by about 4% during the second quarter. While a takeover has yet to happen, the investment has not been in vain nonetheless, as shares have gained another 4% so far in the third quarter. Simon Sadler‘s Segantii Capital was among the funds counting salesforce as a favorite new stock, opening a position during the second quarter that held 264,874 shares on June 30, accounting for 16.58% of its public equity portfolio.

Macy’s, Inc. (NYSE:M), a prominent new holding of Jeffrey Smith’s, also makes an appearance on our list, with the value of shares held by funds we track increasing by just under $1 billion to $2.20 billion during the second quarter. Citadel Advisors and Smith’s Starboard Value accounted for over 40% of that with their new positions of 3.21 million shares and 2.92 million shares respectively. Smith stated in early May that Macy’s, Inc. (NYSE:M)’s real estate holdings were being vastly undervalued by the market and were almost single-handedly worth the company’s market cap. Macy’s shares were up by less than 4% in the second quarter but have yet to live up to Smith’s billing, sliding by over 7% in the third quarter.

Lastly we come to Yum! Brands, Inc. (NYSE:YUM), in which hedge fund ownership in terms of value of holdings increased by 172% to $4.06 billion, during a quarter in which shares rose by just over 14%. The restaurant holding company received a massive investment from activist Keith Meister during the second quarter, as he added over 14.43 million shares to his position. Meister appeared to be on to something, as Yum! Brands, Inc. (NYSE:YUM) beat estimates for its second quarter bottom line, though shares have declined by over 6% in the third quarter. Billionaire Dan Loeb is another shareholder with a notable position in Yum! Brands, of 3.56 million shares as of June 30.

Disclosure: None