Top 5 Stock Picks of Jacob Rothschild’s RIT Capital Partners

2. Keurig Dr Pepper Inc. (NASDAQ:KDP)

RIT Capital Partners’ Stake Value: $67,731,000

Percentage of RIT Capital Partners’ 13F Portfolio: 23.98%

Number of Hedge Fund Holders: 31

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a Massachusetts-based beverage company that operates through Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages divisions. Jacob Rothschild’s RIT Capital Partners held a $67.7 million position in the company as of Q4 2021, representing roughly 24% of the total 13F securities. 

On April 28, Keurig Dr Pepper Inc. (NASDAQ:KDP)’s earnings for Q1 2022 were posted. The company reported an EPS of $0.33, in line with consensus estimates. The $3.08 billion revenue grew 6.06% year-over-year and outperformed market predictions by $64.29 million. 

Truist analyst Bill Chappell downgraded Keurig Dr Pepper Inc. (NASDAQ:KDP) on March 22 to Hold from Buy with a $40 price target. The analyst noted that the company’s coffee segment experienced an artificial lift over the past two years due to pandemic-driven consumer spending patterns. Heading into 2022, he sees a slowdown in the coffee segment, warning that the decline will be faster than anticipated by the Street.

According to the fourth quarter database of Insider Monkey, 31 hedge funds placed long calls on Keurig Dr Pepper Inc. (NASDAQ:KDP), compared to 33 funds in the prior quarter. Harris Associates is the leading shareholder of the company, with almost 49 million shares worth $1.80 billion. 

Here is what ClearBridge Investments has to say about Keurig Dr Pepper Inc. (NASDAQ:KDP)  in its Q1 2021 investor letter:

“Our underweights in health care and staples contributed to relative performance during the period. We also prefer to act with some caution in a sector where regulatory risks persist. In consumer staples, we are broadly finding valuations uncompelling and sold Keurig Dr Pepper during the quarter.”