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The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of September 30th, 2021. What do these smart investors think about Mondelez International Inc (NASDAQ:MDLZ)?
Mondelez International Inc (NASDAQ:MDLZ) has seen a decrease in enthusiasm from smart money in recent months. Mondelez International Inc (NASDAQ:MDLZ) was in 46 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 69. There were 53 hedge funds in our database with MDLZ positions at the end of the second quarter. Our calculations also showed that MDLZ isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).
David E. Shaw of D.E. Shaw
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let's check out the key hedge fund action regarding Mondelez International Inc (NASDAQ:MDLZ).
Do Hedge Funds Think MDLZ Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 46 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from the second quarter of 2021. By comparison, 50 hedge funds held shares or bullish call options in MDLZ a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Trian Partners held the most valuable stake in Mondelez International Inc (NASDAQ:MDLZ), which was worth $465.3 million at the end of the third quarter. On the second spot was Two Sigma Advisors which amassed $385.5 million worth of shares. Arrowstreet Capital, Renaissance Technologies, and Hillhouse Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Trian Partners allocated the biggest weight to Mondelez International Inc (NASDAQ:MDLZ), around 5.78% of its 13F portfolio. Hillhouse Capital Management is also relatively very bullish on the stock, designating 1.42 percent of its 13F equity portfolio to MDLZ.
Due to the fact that Mondelez International Inc (NASDAQ:MDLZ) has faced a decline in interest from the aggregate hedge fund industry, logic holds that there is a sect of fund managers that elected to cut their positions entirely by the end of the third quarter. Interestingly, Matthew Stadelman's Diamond Hill Capital dropped the biggest stake of the "upper crust" of funds followed by Insider Monkey, worth an estimated $598.1 million in stock, and Steve Cohen's Point72 Asset Management was right behind this move, as the fund cut about $76.4 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 7 funds by the end of the third quarter.
Let's now review hedge fund activity in other stocks similar to Mondelez International Inc (NASDAQ:MDLZ). We will take a look at British American Tobacco plc (NYSE:BTI), Enbridge Inc (NYSE:ENB), Lam Research Corporation (NASDAQ:LRCX), Micron Technology, Inc. (NASDAQ:MU), Dell Technologies Inc. (NYSE:DELL), The TJX Companies, Inc. (NYSE:TJX), and Truist Financial Corporation (NYSE:TFC). This group of stocks' market caps resemble MDLZ's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BTI,9,724383,-3 ENB,24,211478,5 LRCX,47,3519311,-11 MU,63,3841359,-24 DELL,60,6142951,-2 TJX,63,2330294,7 TFC,34,275906,-5 Average,42.9,2435097,-4.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 42.9 hedge funds with bullish positions and the average amount invested in these stocks was $2435 million. That figure was $1922 million in MDLZ's case. Micron Technology, Inc. (NASDAQ:MU) is the most popular stock in this table. On the other hand British American Tobacco plc (NYSE:BTI) is the least popular one with only 9 bullish hedge fund positions. Mondelez International Inc (NASDAQ:MDLZ) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MDLZ is 52.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately MDLZ wasn't nearly as popular as these 5 stocks and hedge funds that were betting on MDLZ were disappointed as the stock returned 1.3% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.