Hedge Funds Are Overweight Packaging Stocks

#3. Graphic Packaging Holding Company

At the end of the first quarter, roughly 27% of Graphic Packaging Holding Company (NYSE:GPK) common stock was held by 41 hedge funds or 5.4% of the funds tracked by Insider Monkey. John Lykouretzos and his team chose to play it safe and reduced their fund’s exposure to the stock by 4%. As reported in its latest 13F filing, Hoplite Capital Management holds 10.2 million shares of Graphic Packaging Holding Company (NYSE:GPK) worth $131 million. The company’s presented mixed first quarter results sent the stock tumbling at the end of April. Revenues rose by 2.5% year-over-year to $1.03 billion, but failed to meet analysts’ projections of $1.05 billion. The company also posted adjusted earnings of $0.20 per share, above the consensus of $0.18 per share. Graphic Packaging Holding Company (NYSE:GPK) has recently announced the acquisition of Metro Packaging & Imaging, Inc as it seeks to further develop its supply chain. “Metro Packaging is strategically situated near key northeast customers and supports our vertically-integrated model,” said Michael Doss, President and Chief Executive Officer of Graphic Packaging.

#2. Sealed Air

Sealed Air Corp (NYSE:SEE) could be found in the portfolio of 47 elite hedge funds at the end of March, up from 46 a quarter earlier. The total value of their investments rose to $2.16 billion and amounted 23% of the company’s outstanding stock. David Cohen and Harold Levy‘s Iridian Asset Management holds the largest stake in Sealed Air Corp (NYSE:SEE) among the funds in our database. According to its latest 13F filing, Iridian’s holding went up by 1% to 12.4 million shares valued at $596 million. After a strong rally that saw Sealed Air shares go up by as much as 20%, the company’s mixed first quarter results reduced it to just 7% given yesterday’s closing price of $46.72 per share. Sealed Air Corp (NYSE:SEE) reported $1.59 billion in revenue, down by approximately 9% year-over-year, and adjusted earnings of $0.50 per share. Analysts had projected $1.61 billion in revenue and a profit of $0.48 per share. “As we anticipated, adjusted EBITDA was negatively impacted by currency headwinds, divestitures and product rationalization efforts, and formula pricing in our food care division,” commented Jerome Peribere, CEO of Sealed Air.

#1. Berry Plastics Group

Although the number of hedge funds invested in Berry Plastics Group Inc (NYSE:BERY) inched down during the first quarter to 49, the value of their investment rose by 7.5% to $1.27 billion. Joshua Friedman and Mitchell Julis, the managers of Canyon Capital Advisors, are bullish on Berry Plastics, having increased their investment by 21% to 3.36 million shares reportedly worth $121 million. On May 10 Berry Plastics Group Inc (NYSE:BERY) reported fiscal second quarter financial results that topped analysts’ estimates. The company posted a profit of $59 million or $0.58 per share when adjusted for one-time gains and costs, above the consensus of $0.49 per share. Revenues surged by 32% year-over-year to $1.61 billion, while analysts were looking for $1.65 billion. After a 22% drop in the beginning of the year, Berry Plastics Group Inc (NYSE:BERY) entered a strong uptrend and finished yesterday’s trading session at $40 per share, up by 12.6% for the year.

Disclosure: none.