Mead Johnson Nutrition CO (NYSE:MJN) was in 39 hedge funds’ portfolio at the end of the first quarter of 2013. MJN investors should be aware of an increase in hedge fund sentiment of late. There were 34 hedge funds in our database with MJN holdings at the end of the previous quarter.
To the average investor, there are plenty of gauges shareholders can use to monitor Mr. Market. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can beat their index-focused peers by a superb amount (see just how much).
Just as important, optimistic insider trading activity is a second way to parse down the financial markets. Obviously, there are lots of reasons for an insider to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this method if “monkeys” understand what to do (learn more here).
Keeping this in mind, we’re going to take a glance at the latest action regarding Mead Johnson Nutrition CO (NYSE:MJN).
How have hedgies been trading Mead Johnson Nutrition CO (NYSE:MJN)?
At the end of the first quarter, a total of 39 of the hedge funds we track were bullish in this stock, a change of 15% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Lone Pine Capital, managed by Stephen Mandel, holds the largest position in Mead Johnson Nutrition CO (NYSE:MJN). Lone Pine Capital has a $544.2 million position in the stock, comprising 2.8% of its 13F portfolio. On Lone Pine Capital’s heels is Bain Capital of Brookside Capital, with a $237.8 million position; 5.2% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Robert Karr’s Joho Capital and J Kevin Kenny Jr’s Emerging Sovereign Group.
As aggregate interest increased, key hedge funds were breaking ground themselves. Eton Park Capital, managed by Eric Mindich, established the most valuable position in Mead Johnson Nutrition CO (NYSE:MJN). Eton Park Capital had 51.9 million invested in the company at the end of the quarter. Tony Chedraoui’s Tyrus Capital also initiated a $32.1 million position during the quarter. The following funds were also among the new MJN investors: James Crichton and Adam Weiss’s Scout Capital Management, Charles Clough’s Clough Capital Partners, and Clint Carlson’s Carlson Capital.
What have insiders been doing with Mead Johnson Nutrition CO (NYSE:MJN)?
Insider purchases made by high-level executives is best served when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, Mead Johnson Nutrition CO (NYSE:MJN) has experienced 1 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Mead Johnson Nutrition CO (NYSE:MJN). These stocks are McCormick & Company, Incorporated (NYSE:MKC), Kellogg Company (NYSE:K), The J.M. Smucker Company (NYSE:SJM), Campbell Soup Company (NYSE:CPB), and ConAgra Foods, Inc. (NYSE:CAG). This group of stocks are in the processed & packaged goods industry and their market caps are closest to MJN’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|McCormick & Company, Incorporated (NYSE:MKC)||13||0||5|
|Kellogg Company (NYSE:K)||18||0||9|
|The J.M. Smucker Company (NYSE:SJM)||22||0||8|
|Campbell Soup Company (NYSE:CPB)||16||0||7|
|ConAgra Foods, Inc. (NYSE:CAG)||30||0||6|
With the results demonstrated by Insider Monkey’s tactics, retail investors must always watch hedge fund and insider trading sentiment, and Mead Johnson Nutrition CO (NYSE:MJN) is no exception.