Omega Advisors' Leon Cooperman is no fan of consumer staples stocks as his hedge fund moves to...


Omega Advisors' Leon Cooperman is no fan of consumer staples stocks as his hedge fund moves to short Procter & Gamble (PG +0.1%), Unilever (UL -0.1%), and Nestle (NSRGY.PK) in the new year. The investor says he isn't convinced by the margins and growth of the group. If he's right on his call, the Consumer Staples Select Sector ETF (XLP) also looks dicey.

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Comments (8)
  • The Hern
    , contributor
    Comments (91) | Send Message
     
    maybe, its calls like this that are responsible for the terrible performance of hedge funds this past year.
    4 Jan 2013, 12:01 PM Reply Like
  • kmi
    , contributor
    Comments (4579) | Send Message
     
    I don't have the research analysts and material they have, but my "wallet" indicator tells me a colder winter leaves less discretionary funds available to consumers.

     

    I concur with this opinion, but grand shorts like that aren't how I invest my money...
    4 Jan 2013, 12:44 PM Reply Like
  • elliot_mllr
    , contributor
    Comments (1877) | Send Message
     
    Food companies such as Nestle do not sell discretionary items.
    4 Jan 2013, 03:13 PM Reply Like
  • kmi
    , contributor
    Comments (4579) | Send Message
     
    Excuse me, you are absolutely correct, my quick readthrough somehow made me see XLY/discretionary.
    4 Jan 2013, 04:03 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (4322) | Send Message
     
    Nestle is having excellent success in the emerging markets, especially. The stock's not cheap, but it pays a good dividend, and Nestle is among the most valuable brand names in the world. I'm happy to be long Nestle for the long term, short term gyrations are of little import with the world's most successful packaged foods company. Relax, and have a Kit Kat!
    4 Jan 2013, 01:33 PM Reply Like
  • P.H.
    , contributor
    Comments (11) | Send Message
     
    Poorly written article, but it is Armstrong, not Cooperman, that is short consumer staples.
    4 Jan 2013, 01:35 PM Reply Like
  • carlisam
    , contributor
    Comments (17) | Send Message
     
    Day in day out, quarter by quarter, year-by-year, I have learned this sector isn't the sexiest , but with nice divindends it let's me sleep at nights.
    4 Jan 2013, 01:39 PM Reply Like
  • Be Here Now
    , contributor
    Comments (6215) | Send Message
     
    Shorting a low-beta low-standard-deviation dividend payer is not the smartest move IMHO.
    4 Jan 2013, 03:19 PM Reply Like
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