Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Crown Holdings, Inc. (NYSE:CCK) based on that data and determine whether they were really smart about the stock.
Is Crown Holdings, Inc. (NYSE:CCK) worth your attention right now? Hedge funds were becoming less hopeful. The number of bullish hedge fund bets were trimmed by 1 lately. Crown Holdings, Inc. (NYSE:CCK) was in 52 hedge funds’ portfolios at the end of September. The all time high for this statistic is 63. Our calculations also showed that CCK isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 53 hedge funds in our database with CCK positions at the end of the second quarter.
Michael Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let’s analyze the latest hedge fund action encompassing Crown Holdings, Inc. (NYSE:CCK).
Do Hedge Funds Think CCK Is A Good Stock To Buy Now?
At third quarter’s end, a total of 52 of the hedge funds tracked by Insider Monkey were long this stock, a change of -2% from the previous quarter. By comparison, 47 hedge funds held shares or bullish call options in CCK a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
Among these funds, Lyrical Asset Management held the most valuable stake in Crown Holdings, Inc. (NYSE:CCK), which was worth $312.9 million at the end of the third quarter. On the second spot was 40 North Management which amassed $252 million worth of shares. Millennium Management, Southpoint Capital Advisors, and Maverick Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position SAYA Management allocated the biggest weight to Crown Holdings, Inc. (NYSE:CCK), around 13.06% of its 13F portfolio. Engle Capital is also relatively very bullish on the stock, designating 11.5 percent of its 13F equity portfolio to CCK.
Since Crown Holdings, Inc. (NYSE:CCK) has experienced declining sentiment from hedge fund managers, we can see that there was a specific group of hedge funds who sold off their entire stakes last quarter. At the top of the heap, David Zorub’s Parsifal Capital Management dumped the largest investment of all the hedgies followed by Insider Monkey, worth close to $47.3 million in stock, and Mark Kingdon’s Kingdon Capital was right behind this move, as the fund cut about $22.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds last quarter.
Let’s check out hedge fund activity in other stocks similar to Crown Holdings, Inc. (NYSE:CCK). We will take a look at Athene Holding Ltd. (NYSE:ATH), Icahn Enterprises LP (NASDAQ:IEP), CBOE Global Markets Inc (NASDAQ:CBOE), Williams-Sonoma, Inc. (NYSE:WSM), Advance Auto Parts, Inc. (NYSE:AAP), Packaging Corporation Of America (NYSE:PKG), and Telefonica Brasil SA (NYSE:VIV). This group of stocks’ market valuations resemble CCK’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ATH | 49 | 1675122 | 6 |
| IEP | 4 | 12385467 | 0 |
| CBOE | 35 | 970799 | 4 |
| WSM | 31 | 730615 | -3 |
| AAP | 35 | 899336 | 1 |
| PKG | 26 | 281022 | -5 |
| VIV | 5 | 42334 | -4 |
| Average | 26.4 | 2426385 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.4 hedge funds with bullish positions and the average amount invested in these stocks was $2426 million. That figure was $2139 million in CCK’s case. Athene Holding Ltd. (NYSE:ATH) is the most popular stock in this table. On the other hand Icahn Enterprises LP (NASDAQ:IEP) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Crown Holdings, Inc. (NYSE:CCK) is more popular among hedge funds. Our overall hedge fund sentiment score for CCK is 78.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 29.6% in 2021 and managed to beat the market by another 3.6 percentage points. Hedge funds were also right about betting on CCK as the stock returned 13.7% since the end of September (through 1/31) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.
