Though he holds steady in third place for a fourth consecutive year, Kaumil Gajrawala has otherwise been on the move. In July, he left UBS to cover consumer stocks at New York–based hedge fund Manikay Partners. One of the names Gajrawala has focused on of late is Constellation Brands, a Victor, New York–based wine producer. In June 2012, Constellation announced a deal with Anheuser-Busch InBev to buy the U.S. beer business of Grupo Modelo, Mexican maker of Corona and other brands. That was part of a larger transaction the Belgian-Brazilian brewer was pursuing to obtain the 50 percent of Modelo it didn’t already own. But in late January the U.S. Department of Justice sued AB InBev to block the sale, on antitrust concerns, and Constellation’s shares plunged. Trading in the stock was briefly halted, and it ended that day down 17.4 percent, at $32.36. The next day, Gajrawala reiterated his long-standing buy rating, most recently highlighted in February 2012, believing that AB InBev “was willing to bend to get the deal done,” he says. Ultimately, that’s what happened. The parties announced a revised arrangement two weeks later, boosting the shares to $43.75, and the analyst pounded the table. In early June, Constellation closed the deal. When Gajrawala discontinued coverage late the next month, the shares were trading at $52.09. The researcher “uses his contacts to get a good framework for his companies and overall industry,” lauds one supporter. — Katie Gilbert |
The 2013 All-America Research Team: Beverages, No. 3: Kaumil Gajrawala