Five Alcohol Stocks Hedge Funds Like

#3 Anheuser Busch Inbev SA (ADR) (NYSE:BUD)

-Number of Hedge Fund Holders (as of June 30): 35

-Concentration (as of June 30): 2.9%

Anheuser Busch registered a boost in popularity during the quarter, as the number of hedge funds invested rose to 35 from 32 registered at the end of March. Eric W. Mandelblatt’s Soroban Capital Partners held the largest position among the fund’s followed by Insider Monkey. According to its latest 13F filing, Soroban held 7.3 million Anheuser Busch Inbev SA (ADR) (NYSE:BUD) shares valued at $961 million. The company is currently engaged in a merger process with SABMiller, in what could be the largest beer merger in history. If the $106 billion deal goes through, the newly created entity would account for 28% of the global beer market. In some markets, the combined company would have a near-monopolistic status: in Argentina it would have a market share of 79%, while also holding 64% of Brazilian market and 45% of the Mexican one. As a result, the company would be well placed to capitalize from the eventual growth in emerging markets.

#2 Molson Coors Brewing Co (NYSE:TAP)

-Number of Hedge Fund Holders (as of June 30): 57

-Concentration (as of June 30): 17.5%

At the end of the second quarter, Molson Coors could be found in the portfolio of 57 of the funds tracked by Insider Monkey, up from 52 recorded at the end of March. Billionaire Ken Griffin is very optimistic about the prospects of Molson Coors Brewing Co (NYSE:TAP), having boosted his fund’s stake in the company by 46% during the quarter. As reported in its latest 13F filing, Citadel Investment Group held 2.28 million shares worth approximately $231 million. In the most recent quarter, Molson Coors Brewing Co (NYSE:TAP)’s bottom line was significantly affected by currency headwinds and higher brand investments. The company posted adjusted earnings of $1.11 per share, which were in line with analysts’ estimates, and a 1.9% drop in net sales to $986.2 million, topping investor’s expectations of $962 million. As part of the Anheuser Busch-Miller merger, Molson Coors has agreed to acquire Miller’s share in their co-venture, MillerCoors LLC, for $12 billion.

#1 Constellation Brands, Inc. (NYSE:STZ)

-Number of Hedge Fund Holders (as of June 30): 69

-Concentration (as of June 30): 19%

Constellation Brands is one of the most popular stocks among the funds in our database, with 69 of them having reported a stake as of the end of June, down from 71 a quarter earlier. John Armitage, the manager of Egerton Capital Limited, made a big bullish bet on Constellation Brands, Inc. (NYSE:STZ), having established a position that amounted to 1.85 million shares worth some $305 million at the end of the second quarter. The company has a market cap of $33 billion and pays an annual dividend of $1.60 per share, which provides shareholder with a 0.96% yield. So far this year, investors have had to contend with some choppy movements in the stock, which is up by 17% since the start of the year. Analysts at Wells Fargo & Co. have recently reiterated their ‘Outperform’ rating on Constellation Brands, Inc. (NYSE:STZ) and the $185 price target. Goldman Sachs Group Inc has a similar view of the stock, having reiterated its ‘Buy’ rating in July.

Disclosure: none.