Institutional Investors Channeling More into Food Retail Industry
ARDMORE, Pa. - Investor relations firm Gregory FCA, based in Ardmore, Pa., has found that institutional investors have increased their holdings in the food retail industry by nearly 11 percent in the most recently reported quarter. The net inflow of capital totaled more than $4.5 billion, which translates into annualized growth of nearly 44 percent. Total inflows were approximately $7.7 billion.
The research also found that the five institutions that increased their holdings by the largest dollar amount accounted for $3.11 billion of the capital inflow, highlighted by Lehman Brothers' $1.97 billion investment in the industry. Following Lehman's investment lead was Capital Research & Management, Templeton Investment Counsel, Putnam Investment Management, and Janus Capital Management.
"In this kind of environment, institutional investors move money into certain sectors that they see as weathering the storm. Food retail companies attract those investors by proven performance and consistently marketing both the sector and their company on Wall Street. It is not surprising that institutional money is moving into certain food retail companies, but it always surprises us that there are solidly performing companies who don't benefit from the sector inflow simply because they are not out there telling their stories," said David R. Evanson, president of investor relations at Gregory FCA.
The institutions that divested the most, in terms of total dollars, included American Century Investment Management, MFS Investment Management, Smith Barney Asset Management, J. P. Morgan Investment Management, and Morgan Stanley Investment Management.
The research also found that the five institutions that increased their holdings by the largest dollar amount accounted for $3.11 billion of the capital inflow, highlighted by Lehman Brothers' $1.97 billion investment in the industry. Following Lehman's investment lead was Capital Research & Management, Templeton Investment Counsel, Putnam Investment Management, and Janus Capital Management.
"In this kind of environment, institutional investors move money into certain sectors that they see as weathering the storm. Food retail companies attract those investors by proven performance and consistently marketing both the sector and their company on Wall Street. It is not surprising that institutional money is moving into certain food retail companies, but it always surprises us that there are solidly performing companies who don't benefit from the sector inflow simply because they are not out there telling their stories," said David R. Evanson, president of investor relations at Gregory FCA.
The institutions that divested the most, in terms of total dollars, included American Century Investment Management, MFS Investment Management, Smith Barney Asset Management, J. P. Morgan Investment Management, and Morgan Stanley Investment Management.