Hugh Hendry’s Eclectica Asset Management Is Still Betting Big on Tobacco Stocks

The second largest holding of Hendry is represented by Altria Group Inc (NYSE:MO), a $100.9-billion market cap company engaged in the manufacturing of cigarettes, cigars, wine, and smokeless products. Hendry held 75,200 shares worth $3.78 million of Altria Group Inc (NYSE:MO) at the end of the first quarter. The number of shares also remained unchanged from the previous quarter. Altria Group Inc (NYSE:MO), which is one of the largest tobacco companies in the world, reported first quarter adjusted diluted EPS of $0.63, up 10.5% from $0.57 in the previous year. In addition, the company reaffirmed its full-year 2015 guidance for adjusted diluted EPS at a range of between $2.75 and $2.80. The company’s stock soared by nearly 26% during the last calendar year. Another investor, Matthew Tewksbury‘s Stevens Capital Management, in its latest 13F, reported ownership of 830,051 shares of Altria Group Inc (NYSE:MO) valued at $41.52 million. Tom Russo’s Gardner Russo & Gardner held an even larger position, of about 6.94 million shares of Altria Group Inc (NYSE:MO) as of the end of 2014.

Philip Morris International Inc. (NYSE:PM) remains the third largest holding of Hendry, who holds 38,800 shares of the company valued at $2.94 million. The $131.4-billion market cap company was able to beat revenue and earnings estimates for the first quarter of 2015, reporting diluted earnings per share of $1.16 and revenues of $6.6 billion for the quarter. Moreover, Philip Morris International Inc. (NYSE:PM) increased its 2015 full-year diluted EPS forecast to $4.32 to $4.42, though that would still fall below the $4.76 per share the company earned in 2014. Argentiere Capital, led by Deepak Gulati, disclosed owning 70,500 shares of Philip Morris International Inc. (NYSE:PM) valued at $5.31 million as of the end of the first quarter.

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