Is Tupperware Brands Corporation (NYSE:TUP) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Is Tupperware Brands Corporation (NYSE:TUP) a bargain? Investors who are in the know are getting more optimistic. The number of bullish hedge fund positions advanced by 2 recently. Our calculations also showed that tup isn’t among the 30 most popular stocks among hedge funds. TUP was in 22 hedge funds’ portfolios at the end of the third quarter of 2018. There were 20 hedge funds in our database with TUP holdings at the end of the previous quarter.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let’s take a peek at the new hedge fund action surrounding Tupperware Brands Corporation (NYSE:TUP).
What does the smart money think about Tupperware Brands Corporation (NYSE:TUP)?
Heading into the fourth quarter of 2018, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the previous quarter. On the other hand, there were a total of 23 hedge funds with a bullish position in TUP at the beginning of this year. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Tupperware Brands Corporation (NYSE:TUP) was held by AQR Capital Management, which reported holding $43.7 million worth of stock at the end of September. It was followed by Huber Capital Management with a $34.9 million position. Other investors bullish on the company included Cove Street Capital, Royce & Associates, and Wallace R. Weitz & Co..
Consequently, key hedge funds were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, established the biggest position in Tupperware Brands Corporation (NYSE:TUP). Balyasny Asset Management had $1.3 million invested in the company at the end of the quarter. Michael Platt and William Reeves’s BlueCrest Capital Mgmt. also made a $0.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Steve Cohen’s Point72 Asset Management and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s now review hedge fund activity in other stocks similar to Tupperware Brands Corporation (NYSE:TUP). We will take a look at Constellium NV (NYSE:CSTM), Enanta Pharmaceuticals Inc (NASDAQ:ENTA), Gentherm Inc (NASDAQ:THRM), and HFF, Inc. (NYSE:HF). This group of stocks’ market valuations are similar to TUP’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CSTM | 35 | 439679 | -2 |
| ENTA | 21 | 246143 | 3 |
| THRM | 13 | 104110 | -1 |
| HF | 10 | 14058 | -1 |
| Average | 19.75 | 200998 | -0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $201 million. That figure was $176 million in TUP’s case. Constellium NV (NYSE:CSTM) is the most popular stock in this table. On the other hand HFF, Inc. (NYSE:HF) is the least popular one with only 10 bullish hedge fund positions. Tupperware Brands Corporation (NYSE:TUP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSTM might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
