Hedge Funds Love These Five Consumer Non-Durables Stocks

The popularity of Nike Inc (NYSE:NKE) among elite hedge funds inched up during the first three months of this year and the number of long positions at the end of the quarter reached 64. However, collectively these funds hold just 3.5% of the company’s common stock. Alex Snow’s Lansdowne Partners is betting big on Nike Inc (NYSE:NKE), having further increased its holding of the stock. The fund reportedly holds 16.4 million shares worth $1.01 billion, a position that accounts for nearly 8% of its equity portfolio. Nike Inc (NYSE:NKE) had a strong fiscal third quarter and if its wasn’t for the strong dollar, it would have easily beaten analysts’ estimates. The company also strengthened its position in Asia, with future orders in China and Japan surpassing expectations. Future orders in Japans rose by 24%, while orders in the Greater China surged by 36%, signaling great appetite among Chinese customers despite a slowdown in China’s economy.

Pepsi Is Still Fizzy

Jim Simons’ mathematical models suggest PepsiCo, Inc. (NYSE:PEP) is headed up. Or at least that’s how the market interpreted Renaissance Technologies latest move in Coca-Cola’s competitor. The fund’s latest 13F filing shows an 109% increase in its holding of the stock to 3.73 million shares worth $382 million, the third largest position in its equity portfolio. Stanley Druckenmiller is playing it safe, having bought some PepsiCo, Inc. (NYSE:PEP) stock as well. His fund reportedly holds 353,300 shares valued at $36.2 million. In general, hedge funds are optimistic about the company’s prospects, as the number of funds invested rose to 65 by the end of March, from 58 reported three months earlier. Under pressure from activist investor Nelson Peltz, PepsiCo, Inc. (NYSE:PEP) has undergone some severe cost-cutting measures, while also boosting its advertising efforts. The company is still in the middle of a five-year cost-cutting plan that could increase earnings growth by more than 10%. Since he did not manage to break the company up, Peltz recently liquidated his $2 billion stake in PepsiCo.

Top Dog

Constellation Brands, Inc. (NYSE:STZ) also enjoyed a boost of popularity among the hedge funds tracked by Insider Monkey, having reached 71 long positions at the end of the first quarter. This makes the company the most popular ones from this group. These funds also hold a significant chunk of the company’s common stock, roughly 18% according to our database. Michael Lowenstein made a curious move to reduce his fund’s exposure to Constellation Brands, Inc. (NYSE:STZ), having trimmed Kensico Capital’s stake by 7% to 5.96 million shares worth $900 million at the end of the quarter. The company is considering a spin off for its Canadian wine business, which has been an important part of its income. The main reason behind this move is the company’s debt levels that have been significantly increased by the recent string of acquisitions. In December 2015, Constellation Brands, Inc. (NYSE:STZ) bought San Diego-based Ballast Point Brewing & Spirits, a craft beer maker, for $1 billion and has recently agreed to acquire Prisoner Wine Company’s super-luxury portfolio of five wine brands for $285 million.

Disclosure: none.