Is SYSCO Corporation (SYY) Going to Burn These Hedge Funds?

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With general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Arrowstreet Capital initiated the largest position in SYSCO Corporation (NYSE:SYY). According to regulatory filings, the fund had $83.6 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $10.2 million investment in the stock during the quarter. The following funds were also among the new SYY investors: David Harding’s Winton Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and Ray Carroll’s Breton Hill Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as SYSCO Corporation (NYSE:SYY) but similarly valued. These stocks are Kellogg Company (NYSE:K), Intuit Inc. (NASDAQ:INTU), Sempra Energy (NYSE:SRE), and Tesla Motors Inc (NASDAQ:TSLA). This group of stocks’ market caps are similar to SYY’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
K 39 1306871 12
INTU 26 697375 -2
SRE 16 640974 -9
TSLA 34 1005235 -2

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $913 million. That figure was a whooping $3.56 billion in SYY’s case. Kellogg Company (NYSE:K) is the most popular stock in this table. On the other hand Sempra Energy (NYSE:SRE) is the least popular one with only 16 bullish hedge fund positions. SYSCO Corporation (NYSE:SYY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard K might be a better candidate to consider a long position in.

Disclosure: None

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