Do Hedge Funds Love Tupperware Brands Corporation (TUP)?

Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Tupperware Brands Corporation (NYSE:TUP).

Tupperware Brands Corporation (NYSE:TUP) was in 18 hedge funds’ portfolios at the end of the third quarter of 2015. TUP investors should pay attention to an increase in activity from the world’s largest hedge funds lately. There were 16 hedge funds in our database with TUP holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Cimpress NV (NASDAQ:CMPR), Cathay General Bancorp (NASDAQ:CATY), and ALLETE Inc (NYSE:ALE) to gather more data points.

Now, let’s view the new action encompassing Tupperware Brands Corporation (NYSE:TUP).

What does the smart money think about Tupperware Brands Corporation (NYSE:TUP)?

Heading into Q4, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from the second quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Joe Huber’s Huber Capital Management has the number one position in Tupperware Brands Corporation (NYSE:TUP), worth close to $75.3 million, amounting to 2.6% of its total 13F portfolio. The second largest stake is held by Cove Street Capital, led by Jeffrey Bronchick, holding a $10.7 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Other professional money managers that hold long positions encompass Ken Griffin’s Citadel Investment Group, Cliff Asness’ AQR Capital Management and Andrew Sandler’s Sandler Capital Management.

Now, key hedge funds have jumped into Tupperware Brands Corporation (NYSE:TUP) headfirst. Cove Street Capital, managed by Jeffrey Bronchick, assembled the biggest position in Tupperware Brands Corporation (NYSE:TUP). Cove Street Capital had $10.7 million invested in the company at the end of the quarter. Andrew Sandler’s Sandler Capital Management also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management, David Harding’s Winton Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s also examine hedge fund activity in other stocks similar to Tupperware Brands Corporation (NYSE:TUP). These stocks are Cimpress NV (NASDAQ:CMPR), Cathay General Bancorp (NASDAQ:CATY), ALLETE Inc (NYSE:ALE), and Ternium S.A. (ADR) (NYSE:TX). All of these stocks’ market caps match TUP’s market cap.

As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $128 million in TUP’s case. Cimpress NV (NASDAQ:CMPR) is the most popular stock in this table. On the other hand ALLETE Inc (NYSE:ALE) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Tupperware Brands Corporation (NYSE:TUP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.