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McCormick & Company, Incorporated (MKC): Are Hedge Funds Right About This Stock?

Consequently, key money managers have jumped into McCormick & Company, Incorporated (NYSE:MKC) headfirst. Select Equity Group, managed by Robert Joseph Caruso, assembled the largest position in McCormick & Company, Incorporated (NYSE:MKC). Select Equity Group had $2.3 million invested in the company at the end of the quarter. Citadel Investment Group also initiated a $1.8 million position during the quarter. The other funds with brand new MKC positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, John Overdeck and David Siegel’s Two Sigma Advisors, and George Hall’s Clinton Group.

Let’s now take a look at hedge fund activity in other stocks similar to McCormick & Company, Incorporated (NYSE:MKC). We will take a look at Spectra Energy Partners, LP (NYSE:SEP), Franco-Nevada Corporation (NYSE:FNV), Fifth Third Bancorp (NASDAQ:FITB), and Lam Research Corporation (NASDAQ:LRCX). All of these stocks’ market caps are similar to MKC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SEP 9 56399 -4
FNV 15 418087 0
FITB 24 333120 -3
LRCX 47 2031070 0

As you can see these stocks had an average of 23.75 hedge funds with bullish positions and the average amount invested in these stocks was $710 million. That figure was $127 million in MKC’s case. Lam Research Corporation (NASDAQ:LRCX) is the most popular stock in this table. On the other hand Spectra Energy Partners, LP (NYSE:SEP) is the least popular one with only 9 bullish hedge fund positions. McCormick & Company, Incorporated (NYSE:MKC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LRCX might be a better candidate to consider a long position in.

Disclosure: None

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