Published on 12 Oct 2021 on Insider Monkey via Yahoo Finance

Do Hedge Funds Love Church & Dwight Co., Inc. (CHD)?

With the second-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the third quarter of 2021. One of these stocks was Church & Dwight Co., Inc. (NYSE:CHD).

Church & Dwight Co., Inc. (NYSE:CHD) shareholders have witnessed an increase in support from the world's most elite money managers recently. Church & Dwight Co., Inc. (NYSE:CHD) was in 35 hedge funds' portfolios at the end of June. The all time high for this statistic is 38. Our calculations also showed that CHD isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

So, why do we pay attention to hedge fund sentiment before making any investment decisions? 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 more than 79 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.