Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips on the charts, usually don’t make them change their opinion towards a company. The second half of 2015 and the first few months of this year was a stressful period for hedge funds. However, things have been taking a turn for the better in the second half of this year. Small-cap stocks which hedge funds are usually overweight outperformed the market by double digits and it may be a good time to pay attention to hedge funds’ picks before it is too late. In this article we are going to analyze the hedge fund sentiment towards Tyson Foods, Inc. (NYSE:TSN) to find out whether it was one of their high conviction long-term ideas.
Tyson Foods, Inc. (NYSE:TSN) shareholders have witnessed a decrease in enthusiasm from smart money recently. 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 AvalonBay Communities Inc (NYSE:AVB), Pioneer Natural Resources (NYSE:PXD), and CBS Corporation (NYSE:CBS) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Now, we’re going to view the latest action surrounding Tyson Foods, Inc. (NYSE:TSN).
How have hedgies been trading Tyson Foods, Inc. (NYSE:TSN)?
At Q3’s end, a total of 35 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decrease of 13% from the second quarter of 2016. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, AQR Capital Management, managed by Cliff Asness, holds the most valuable position in Tyson Foods, Inc. (NYSE:TSN). The fund has a $569.1 million position in the stock, comprising 0.9% of its 13F portfolio. On AQR Capital Management’s heels is Iridian Asset Management, run by David Cohen and Harold Levy, which holds a $432.8 million position; the fund has 3.8% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include D. E. Shaw’s D E Shaw, David Harding’s Winton Capital Management and Dmitry Balyasny’s Balyasny Asset Management.