Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of "Mad Money" and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s bullish and bearish stock picks on his show is the starting point for many investments made by these folks. We will try to help these people by analyzing hedge fund holdings in these stocks.
On April 11th Jim Cramer was bullish about the following stocks:
Deere (DE): Cramer thinks Federal Reserve is willing to accept inflation in exchange for stimulating job creation. This will cause food prices to go up. As a result, Cramer thinks, farmers will use better equipment and better fertilizer to boost their output. That’s why he is bullish about farm equipment maker Deere (DE). Ralph Whitworth’s Relational Advisors has the largest position in Deere with $379 Million invested at the end of December. Ken Fisher had $170 Million in DE.
Potash (POT): Cramer is also bullish about fertilizer producer Potash. David Einhorn’s Greenlight, Thomas Steyer’s Farallon Capital, Jim Simons’ Renaissance, Dan Loeb’s Third Point, Andreas Halvorsen’s Viking Global, Richard Perry’s Perry Capital, and Mohnish Pabrai have large Potash investments.
Baidu.com (BIDU) and Sina (SINA): When asked about NetEase, Cramer said he only recommends two Chinese companies, Baidu and Sina. Baidu is very popular among prominent investors. Fisher Asset Management, Coatue, Discovery Capital, and JAT Capital had $100+ Million in BIDU at the end of December. Sina wasn’t nearly as popular but hedge funds bullish about China also had SINA in their portfolios. Shumway Capital, Coatue and JAT are the largest holders.
Herbalife (HLF) and Tupperware (TUP): Cramer doesn’t like direct sales company Avon, but he thinks HLF and TUP are doing better. He thinks the business is “on fire” because a lot of unemployed people want to earn additional income by selling their products. Patrick McCormack’s Tiger Consumer is bullish about HLF. Cliff Asness’ AQR is the largest Tupperware owner among prominent hedge funds.
Kohlberg Kravis Roberts & Co (KKR): Cramer likes private equity company KKR because it will benefit from the financial regulation. The stock has a 6.7% dividend yield and Cramer thinks it may even go higher. Leon Cooperman’s Omega Advisors has the largest position in KKR among prominent hedge funds.
Jim Cramer was bearish about the following stocks:
Cubist Pharmaceutical (CBST): He thinks Cubist went up a lot and the stock doesn’t have catalysts to ignite another increase. John London’s Suttonbrook Capital had $14 Million in CBST at the end of December.
Discover Financial Serv (DFS): Cramer didn’t recommend buying DFS at this point because of its recent increase. Larry Robbins’ Glenview had the largest position in DFS among prominent hedge funds.
OpenTable (OPEN): Cramer likes OpenTable’s business model but thinks the stock is overpriced at its current levels. John Thaler’s JAT Capital and Steve Cohen’s SAC had the two largest positions in this stock.
Fastenal (FAST): Cramer recommended selling Fastenal in the Lightning Round because it had a good run. Fastenal wasn’t very popular among hedge funds. Elm Ridge Management had a $10 Million investment at the end of December.
Wisconsin Energy (WEC): Cramer recommended reducing this position by 40%. There weren’t any hedge funds with significant positions in WEC.
Tesla Motors (TSLA): Cramer thinks this stock is too risky at this moment. John Griffin’s Blue Ridge Capital had $15 and Balyasny had $8 Million in TSLA at the end of December.
NetEase.com (NTES): Cramer only recommends two Chinese companies and NTES isn’t one of them. Jim Simons’ Renaissance had the largest position in this stock with a $59 Million investment.
Bank of America (BAC): Cramer thinks BAC is “dead money” right now, so he is bearish in the short term. However, he thinks the stock will increase this summer as the US economy accelerates. Dozens of hedge funds are bullish about BAC. John Paulson and Bruce Berkowitz had more than $1 Billion each in BAC at the end of December.
Avon Products (AVP): Cramer doesn’t like Avon’s management. Phill Gross’ Adage Capital had the largest position in AVP at the end of December.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.