Published on 18 Oct 2021 on Insider Monkey via Yahoo Finance
Is Coca-Cola Europacific Partners PLC (CCEP) A Good Stock To Buy?
Last year we predicted the arrival of the first US recession since 2009 and we told in advance that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Coca-Cola Europacific Partners PLC (NASDAQ:CCEP).
Is CCEP a good stock to buy? Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) was in 31 hedge funds' portfolios at the end of June. The all time high for this statistic is 40. CCEP investors should be aware of an increase in hedge fund interest in recent months. There were 25 hedge funds in our database with CCEP holdings at the end of March. Our calculations also showed that CCEP isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.