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Hedge Funds Love These Consumer Stocks -- Should You?

Stocks in this article: ENRKOMJNMOWAG

 

BALTIMORE (Stockpickr) -- Hedge funds love consumer stocks. In fact, there's no sector that professional investors love as much as consumer staples right now (and none they hate as much as energy).

Read More: 10 Stocks Billionaire John Paulson Loves in 2014

So which names are pro investors piling into? And which still make sense to buy today? Today, we'll answer both of those questions by peeking at the latest round of 13F filings.

What's a 13F anyway?

Institutional investors with more than $100 million in assets are required to file a 13F, a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.

In total, approximately 3,800 firms file 13F forms each quarter, and by comparing one quarter's filing to another, we can see how any single fund manager is moving their portfolio around. While the data is generally delayed by about a quarter, that's not necessarily a bad thing. Research shows that applying a lag to institutional holdings can generate positive alpha in some cases. That's all the more reason to crack open the moves being made with pro investors' $20.5 trillion under management.

Today, we'll focus on hedge funds' five favorite consumer stocks.

Read More: 5 Low-Priced Stocks to Trade for Big Gains

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