We recently compiled a list of the Top 10 Stocks to Buy According to Lee Munder Capital Group. In this article, we are going to take a look at where The Coca-Cola Company (NYSE:KO) stands against the other stocks.
Lee Munder Capital Group Investments, more commonly known as LMCG Investments, LLC, is an independent, employee-owned investment management company. Established in 2000 as Lee Munder Capital Group, it has 25 years of average investment experience and typically deals with alternative investments and wealth management. Specifically, the globally focused investment management firm provides a diverse array of investment strategies tailored to institutional investors, financial advisors, and private clients. The firm specializes in global equity, fixed income, and absolute return or relative value credit strategies. With a client-first approach, LMCG prioritizes aligning its interests with those of its investors, emphasizing transparency and long-term value creation. By leveraging its expertise and disciplined investment approach, the firm aims to deliver strong financial performance and best-in-class investment solutions. Founded and managed by Lee Munder himself, the firm has established a strong reputation in the financial industry.
As of March 2024, LMCG Investments manages discretionary assets totaling approximately $5.5 billion, serving 1,527 clients. The firm reported $1.63 billion in managed 13F securities for the fourth quarter of 2024, with its top 10 holdings making up over 28% of its portfolio. LMCG’s strategic investment approach and diversified portfolio reflect its commitment to delivering strong financial performance and value to its clients.
Munder also established Lee Munder Venture Partners LLC and founded Munder Capital Management. With extensive experience in investment management, Munder has held key positions, including Vice President at Loomis, Sayles & Co. LP. Currently, he serves as Chairman at IC Real Tech, an innovation-driven video technology company. Lee Munder holds an MBA from Wayne State University and an undergraduate degree from Ohio State University. Given this, we will take a look at top 10 stocks in Lee Munder’s portfolio.
Our Methodology
The stocks discussed below were picked from LMCG’s 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt.
The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders as of Q3: 69
LMCG’s Equity Stake: $26.02 Million
The Coca-Cola Company (NYSE:KO) is a globally recognized multinational corporation specializing in the production, marketing, and sale of both alcoholic and non-alcoholic beverages. Headquartered in Atlanta, Georgia, the company traces its origins to 1886 when pharmacist John Stith Pemberton used cocaine and caffeine to develop the original Coca-Cola formula as a patent medicine stemming from his effort to control his own opioid addiction. Originally marketed as a “healthy tonic” to the masses when the drink contained cocaine for the cure of opioid addiction, its formula has gone through many revisions to become the popular soft drink of today.
Since the company’s incorporation in 1892, The Coca-Cola Company (NYSE:KO) has expanded significantly, operating in over 200 countries and territories. The company has continuously evolved over the years, reducing added sugar in its drinks and introducing innovative new products to meet changing consumer preferences. The company’s portfolio now includes more than 200 brands, spanning soft drinks, bottled water, coffee, tea, and even alcoholic beverages. Through strategic acquisitions and sustainability efforts, Coca-Cola remains a dominant force in the beverage industry.
The Coca-Cola Company (NYSE:KO) generates revenue through various streams, primarily from its extensive lineup of beverages. Additionally, the company benefits from licensing fees paid by its vast network of bottling and distribution partners, ensuring its products reach global consumers. The company also secures passive earnings from strategic investments across multiple industries. This diversified financial structure, along with its strong brand presence and innovation-driven approach, allows Coca-Cola to maintain its leadership position in the global beverage market.
LMCG owns over 417,938 shares of the company as of Q4 2024, with a total value of $26.02 million. The fund decreased its stake in The Coca-Cola Company (NYSE:KO) by 4% during the fourth quarter of 2024. Overall, by the end of the September quarter, 69 hedge funds out of the 900 funds tracked by Insider Monkey held stakes in KO worth over $34.95 billion, up from 68 funds by the end of Q2, which suggests positive hedge fund sentiment about the stock.
According to James Quincey, Chairman and CEO of The Coca-Cola Company (NYSE:KO), July was a slow month for the company, yet the business trends improved each consecutive month in the quarter, and the company’s year-to-date performance gave them confidence in delivering at the high end of their previous top-line guidance by the end of 2024. Moreover, the company faced nearly double-digit currency headwinds and the impact of bottler re-franchising, which could have affected revenue.
Overall KO ranks 10th on our list of Lee Munder Capital Group’s top stock picks. While we acknowledge the potential of KO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.