Hedge Funds Are Buying These 10 Mid-Caps, Part 1

J. M. Smucker Co (NYSE:SJM)

-Investors with Long Positions (as of September 30): 47

-Aggregate Value of Investors’ Holdings (as of September 30): $1.58 Billion

The number of smart money investors with stakes in J. M. Smucker Co (NYSE:SJM) stood at 47 at the end of the September, up by 17 quarter-over-quarter. These top money managers owned 11.50% of the company’s outstanding common stock on September 30. By the same token, the value of hedge funds’ stakes climbed to $1.58 billion from $1.01 billion during the three-month period. The food maker seems to be back on track, as the company’s sales have grown quite significantly over the past three quarters. The shares of the company have advanced by 19% since the beginning of the year, yet still look quite cheap at the moment if solely looking at J. M. Smucker’s trailing P/E ratio of just 17.79. Ricky Sandler’s Eminence Capital significantly increased its exposure to J. M. Smucker Co (NYSE:SJM) during the July-to-September period, ending the quarter with 1.31 million shares.

Nordstrom Inc. (NYSE:JWN)

-Investors with Long Positions (as of September 30): 38

-Aggregate Value of Investors’ Holdings (as of September 30): $840.88 Million

Nordstrom Inc. (NYSE:JWN) also received more attention from the hedge fund industry during the third quarter, as the number of top money managers invested in the company grew to 38 from 27 quarter-over-quarter. Nevertheless, the value of their investments shrank to $840.88 million from $945.62 million during the turbulent quarter. The fashion retailer experienced lower-than-expected growth in the third quarter, with its total net sales increasing by 6.6% year-over-year and comparable sales increasing by a mere 0.9%. Analysts may have had overly high expectations on the retail sector considering the tightening U.S labor market, but Nordstrom and other retailers failed to impress with their third quarter financial results. Nonetheless, smart money may be anticipating a strong holiday quarter for Nordstrom, which has cued their buying. Nordstrom’s stock, which has lost 28% year-to-date, is trading at an attractive trailing P/E ratio of 16.31 at the moment. Steven Cohen’s Point72 Asset Management was very bullish on Nordstrom Inc. (NYSE:JWN) during the third quarter, as it lifted its stake in the company to 857,100 shares.

WestRock Co (NYSE:WRK)

-Investors with Long Positions (as of September 30): 42

-Aggregate Value of Investors’ Holdings (as of September 30): $1.47 Billion

WestRock Co (NYSE:WRK) attracted the strongest investor interest in the mid-cap space during the quarter, as the number of hedge funds with long positions in the company climbed by 41 during the three-month period. These top money managers had amassed 10.90% of the company’s shares on September 30, while the value of their investments added up to $1.47 billion. The shares of WestRock began trading on the NYSE on July 2, following the completion of the merger between packaging materials makers Rock Tenn and MeadWestvaco. The freshly-created provider of packaging solutions and manufacturer of containerboard and paperboard has seen its stock decline by roughly 19% since its IPO, and shares are currently trading at a cheap trailing P/E ratio of 16.04. Larry Robbins’ Glenview Capital acquired a 4.39 million-share stake in WestRock Co (NYSE:WRK) during the September quarter.

Disclosure: None