Value Hedge Funds are Winning in 2022 Thanks to These 5 Stocks

2. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 55 

PE Ratio: 8.33

YTD Increase in Share Price as of June 16: 7.37%

Bunge Limited (NYSE:BG) operates as an agribusiness and food company. The company has a solid track record in the dividend space with a history stretching to more than two decades. On May 12, the firm declared a quarterly dividend of $0.625 per share, an increase of 19% from the previous dividend of $0.525 per share. The forward yield was 2.28%. The dividend is payable to shareholders by early September. 

On April 28, investment advisory Credit Suisse maintained an Outperform rating on Bunge Limited (NYSE:BG) stock and raised the price target to $140 from $120. Analyst Robert Moskow issued the ratings update. 

Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Bunge Limited (NYSE:BG) with 1.6 million shares worth more than $183 million.  

In its Q1 2022 investor letter, Old West Investment Management, an asset management firm, highlighted a few stocks and Bunge Limited (NYSE:BG) was one of them. Here is what the fund said:

“Bunge Limited (NYSE:BG) (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at Bunge Limited (NYSE:BG). One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)