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Is Kraft Heinz Co (KHC) a Good Stock To Buy?

After a lengthy stretch of outperformance, small-cap stocks suffered from July 2015 through June 2016, as heightened global economic fears led investors to flee to the safe havens of large-cap stocks and other instruments. Those stocks outperformed small-caps by about 10 percentage points during that time, with small-cap healthcare stocks being particularly hard hit. However, the tide has since turned in a big way, as evidenced by small-caps toppling their large-cap peers by 5 percentage points in the third quarter, and by another 5 percentage points in the first seven weeks of the fourth quarter. In this article, we’ll analyze how this shift affected hedge funds’ third-quarter trading of Kraft Heinz Co (NASDAQ:KHC) and see how the stock is affected by the recent hedge fund activity.

Kraft Heinz Co (NASDAQ:KHC) has experienced a decrease in activity from the world’s largest hedge funds of late, as the stock was included in the equity portfolios of 52 investors from our database at the end of September, compared to 60 funds a quarter earlier. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as NTT Docomo Inc (ADR) (NYSE:DCM), 3M Co (NYSE:MMM), and McDonald’s Corporation (NYSE:MCD) to gather more data points.

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