5 Value Arbitrage Stocks Sabrepoint Capital is Buying

2. Clearwater Paper Corporation (NYSE:CLW)

One of Sabrepoint Capital’s biggest buys of Q3 was in Clearwater Paper Corp (NYSE:CLW), as it bought another 263,900 shares to give it 735,000 total, a position valued at $28.14 million on September 30 and giving the fund 7.47% exposure to the stock in its 13F portfolio. Hedge fund ownership of CLW has rebounded slightly after bottoming out during the first quarter of 2020, though more hedge funds did sell off their CLW positions in Q2 than in any quarter since 2014.

One of the Top 22 Packaging Companies in USA, Clearwater Paper Corp (NYSE:CLW) shares took a hit following the December acquisition of Verso by BillerudKorsnas AB, which intends to convert several Verso machines to packaging board, adding a new level of risk to Clearwater’s story, as the company is one of the largest boxboard producers. It pulled in $450.5 million in revenue and 0.55 in EPS during Q3, both of which comfortably topped estimates.