Hedge Funds Like These Agricultural Chemicals Stocks

#3 Syngenta AG (ADR) (NYSE:SYT)

– Number of Hedge Fund Shareholders (as of June 30): 33
– Total Value of Hedge Funds’ Holdings (as of June 30): $1.1 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 3.10%

Unlike the other stocks on our list, hedge funds are long Syngenta AG (ADR) (NYSE:SYT) mainly for arbitrage reasons. Earlier in the year, ChemChina agreed to purchase Syngenta for $43 billion in cash in a deal that is expected to close by the end of the year. Syngenta’s current market cap valuation is around $41 billion, giving the stock limited upside. Syngenta trades at a slight discount mainly due to the pending antitrust review by various regulators worldwide. U.S. regulators have given the deal the green light. 33 funds that we track had a bullish position in Syngenta AG (ADR) (NYSE:SYT) as of the most recent 13F reporting period, up by one from the end of the previous quarter.

#2 CF Industries Holdings, Inc. (NYSE:CF)

– Number of Hedge Fund Shareholders (as of June 30): 34
– Total Value of Hedge Funds’ Holdings (as of June 30): $832.24 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 14.80%

Like other fertilizer nutrient producers, CF Industries Holdings, Inc. (NYSE:CF) shares rallied on August 30 when news broke that Potash Corporation was in merger discussions with Agrium. If a merger is struck, nutrient prices could rebound from their bear market, meaning CF Industries’ profits and cash flow would increase. An increase in cash flow would make CF’s annual dividend of $1.20, good for a 4.68% annual dividend yield, more sustainable. 34 hedge funds in our system were long CF Industries Holdings, Inc. (NYSE:CF) at the end of June.

#1 Monsanto Company (NYSE:MON)

– Number of Hedge Fund Shareholders (as of June 30): 87
– Total Value of Hedge Funds’ Holdings (as of June 30): $5.32 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 11.80%

Bayer’s bid for Monsanto Company (NYSE:MON) keeps going up. A few months after Bayer bid $125 per share for Monsanto, the German company upped its price again, this time to $127.50 per share. Given the increased price, the odds of a merger agreement are higher, as CNBC recently reported that Monsanto told Bayer that it was “close” in terms of its bidding price. Monsanto has also opened its books for Bayer so that the potential acquirer can conduct due diligence. Although some shareholders are pulling for a $130 per share or higher offer, there is a chance that Bayer may instead go hostile rather than go any higher or just walk away entirely. 87 funds in our database were long Monsanto Company (NYSE:MON) at the end of the second quarter, up by 36 funds from the end of March.

Disclosure: None

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