Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Is Nomad Foods Limited Ordinary Shares (NYSE:NOMD) worth your attention right now? Investors who are in the know are absolutely becoming more confident. The number of long hedge fund bets that are revealed through the 13F filings moved up by 5 in recent months. There were 33 hedge funds in our database with NOMD holdings at the end of the previous quarter. At the end of this article we will also compare NOMD to other stocks including Interval Leisure Group, Inc. (NASDAQ:IILG), Press Ganey Holdings Inc (NYSE:PGND), and Alexander’s, Inc. (NYSE:ALX) to get a better sense of its popularity.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
Keeping this in mind, let’s take a gander at the key action regarding Nomad Foods Limited Ordinary Shares (NYSE:NOMD).
Hedge fund activity in Nomad Foods Limited Ordinary Shares (NYSE:NOMD)
At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey were long this stock, up by 15% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in NOMD over the last 5 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Bill Ackman’s Pershing Square has the biggest position in Nomad Foods Limited Ordinary Shares (NYSE:NOMD), worth close to $394 million, corresponding to 7.3% of its total 13F portfolio. The second largest stake is held by Keith Meister of Corvex Capital, with a $182.4 million position; the fund has 3.4% of its 13F portfolio invested in the stock. Other professional money managers that are bullish encompass Dan Loeb’s Third Point, Ken Griffin’s Citadel Investment Group and Barry Lebovits and Joshua Kuntz’s Rivulet Capital. We should note that Rivulet Capital is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Tricadia Capital Management, led by Michael Barnes and Arif Inayatullah, created the biggest position in Nomad Foods Limited Ordinary Shares (NYSE:NOMD). According to regulatory filings, the fund had $7.9 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $6.6 million position during the quarter. The other funds with brand new NOMD positions are Paul Tudor Jones’ Tudor Investment Corp, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Murray Stahl’s Horizon Asset Management.
Let’s now review hedge fund activity in other stocks similar to Nomad Foods Limited Ordinary Shares (NYSE:NOMD). We will take a look at Interval Leisure Group, Inc. (NASDAQ:IILG), Press Ganey Holdings Inc (NYSE:PGND), Alexander’s, Inc. (NYSE:ALX), and Itron, Inc. (NASDAQ:ITRI). All of these stocks’ market caps resemble NOMD’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $241 million. That figure was a whooping $1.07 billion in NOMD’s case. Interval Leisure Group, Inc. (NASDAQ:IILG) is the most popular stock in this table. On the other hand Alexander’s, Inc. (NYSE:ALX) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Nomad Foods Limited Ordinary Shares (NYSE:NOMD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.