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. We at Insider Monkey have plowed through 873 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article we look at what those investors think of Nomad Foods Limited (NYSE:NOMD).
Nomad Foods Limited (NYSE:NOMD) investors should pay attention to an increase in support from the world’s most elite money managers lately. Nomad Foods Limited (NYSE:NOMD) was in 26 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 42. There were 25 hedge funds in our database with NOMD holdings at the end of March. Our calculations also showed that NOMD isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Thomas Claugus of GMT Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to view the fresh hedge fund action surrounding Nomad Foods Limited (NYSE:NOMD).
Do Hedge Funds Think NOMD Is A Good Stock To Buy Now?
At Q2’s end, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards NOMD over the last 24 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Nomad Foods Limited (NYSE:NOMD) was held by Renaissance Technologies, which reported holding $136.5 million worth of stock at the end of June. It was followed by D E Shaw with a $26 million position. Other investors bullish on the company included AltraVue Capital, Arrowstreet Capital, and GMT Capital. In terms of the portfolio weights assigned to each position AltraVue Capital allocated the biggest weight to Nomad Foods Limited (NYSE:NOMD), around 6.59% of its 13F portfolio. Claar Advisors is also relatively very bullish on the stock, dishing out 3.71 percent of its 13F equity portfolio to NOMD.
As aggregate interest increased, key money managers have been driving this bullishness. Armistice Capital, managed by Steven Boyd, initiated the most valuable position in Nomad Foods Limited (NYSE:NOMD). Armistice Capital had $5.7 million invested in the company at the end of the quarter. Mika Toikka’s AlphaCrest Capital Management also initiated a $2.5 million position during the quarter. The following funds were also among the new NOMD investors: Donald Sussman’s Paloma Partners, Ryan Caldwell’s Chiron Investment Management, and Jinghua Yan’s TwinBeech Capital.
Let’s go over hedge fund activity in other stocks similar to Nomad Foods Limited (NYSE:NOMD). These stocks are Stantec Inc. (NYSE:STN), Power Integrations Inc (NASDAQ:POWI), Revolve Group, Inc. (NYSE:RVLV), Spirit AeroSystems Holdings, Inc. (NYSE:SPR), Red Rock Resorts, Inc. (NASDAQ:RRR), Atotech Limited (NYSE:ATC), and VIZIO Holding Corp. (NYSE:VZIO). 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 |
|---|---|---|---|
| STN | 10 | 46456 | 1 |
| POWI | 21 | 138778 | 3 |
| RVLV | 22 | 211498 | -7 |
| SPR | 35 | 853789 | -9 |
| RRR | 26 | 658230 | -2 |
| ATC | 23 | 82518 | 6 |
| VZIO | 19 | 128239 | 0 |
| Average | 22.3 | 302787 | -1.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.3 hedge funds with bullish positions and the average amount invested in these stocks was $303 million. That figure was $298 million in NOMD’s case. Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is the most popular stock in this table. On the other hand Stantec Inc. (NYSE:STN) is the least popular one with only 10 bullish hedge fund positions. Nomad Foods Limited (NYSE:NOMD) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NOMD is 56.6. 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 24.9% in 2021 through October 15th and beat the market again by 4.5 percentage points. Unfortunately NOMD wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NOMD were disappointed as the stock returned -3.3% since the end of June (through 10/15) 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.
Follow Nomad Foods Ltd (NYSE:NOMD)
Follow Nomad Foods Ltd (NYSE:NOMD)
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Disclosure: None. This article was originally published at Insider Monkey.
