Does Pinnacle Foods Inc (NYSE:PF) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.
In Pinnacle Foods Inc (NYSE:PF)’s case, the company registered an increase in popularity as the number of bullish hedge fund bets increased by eight to 41 during the third quarter. However, the level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Carter’s, Inc. (NYSE:CRI), Six Flags Entertainment Corp (NYSE:SIX), and Servicemaster Global Holdings Inc (NYSE:SERV) to gather more data points.
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Keeping this in mind, we’re going to take a look at the latest action surrounding Pinnacle Foods Inc (NYSE:PF).
How have hedgies been trading Pinnacle Foods Inc (NYSE:PF)?
A total of 41 funds tracked by Insider Monkey held long positions in Pinnacle Foods at the end of the third quarter, up by 24% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, David Cohen and Harold Levy’s Iridian Asset Management holds the biggest position in Pinnacle Foods Inc (NYSE:PF). Iridian Asset Management has a $263.3 million position in the stock, comprising 2.3% of its 13F portfolio. Coming in second is Levin Capital Strategies, managed by John A. Levin, which holds a $210.4 million position; the fund has 3.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions consist of Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group, and Clint Carlson’s Carlson Capital.