Here’s Where Hedge Funds Invested in the First Quarter

  • Facebook tops list of stocks getting the most new investments
  • Many of the hedge fund darlings have been involved with deals

An employee closes the Snapchat Spectacles by Snap Inc. vending machine pop-up store after sunset in the Venice neighborhood of Los Angeles.

Photographer: Patrick T. Fallon/Bloomberg

The favorite new bets by hedge funds ranged from the predictable Facebook Inc. to the less known VCA Inc., a pet-service provider.

Many companies attracting the most hedge fund money in the first quarter have either agreed to deals or closed them. Dow Chemical’s $78 billion merger with DuPont Co. is expected to close in August. Liberty Media Corp. purchased Formula 1 in January, Mead Johnson Nutrition Co. agreed to buy Reckitt Benckiser Group during the first quarter, and T-Mobile US Inc. has been in preliminary talks to merge with Sprint Corp.

Hedge funds also showered love on new media, Snap Inc., whose shares have been on a roller coaster, and the old, Time Warner Inc. What’s more, managers applauded the planned shakeup at railroad CSX Corp., and are relieved that the Trump administration’s efforts to build a wall at the border with Mexico, from where Constellation Brands Inc. imports much of its beer, has stalled.

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