Is O-I Glass, Inc. (NYSE:OI) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
O-I Glass, Inc. (NYSE:OI) was in 32 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 30. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. OI shareholders have witnessed an increase in enthusiasm from smart money lately. There were 24 hedge funds in our database with OI positions at the end of the second quarter. Our calculations also showed that OI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Peter Rathjens of Arrowstreet 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 take a peek at the key hedge fund action regarding O-I Glass, Inc. (NYSE:OI).
Do Hedge Funds Think OI Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from the second quarter of 2021. On the other hand, there were a total of 27 hedge funds with a bullish position in OI a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Abrams Capital Management, managed by David Abrams, holds the number one position in O-I Glass, Inc. (NYSE:OI). Abrams Capital Management has a $99 million position in the stock, comprising 2.2% of its 13F portfolio. On Abrams Capital Management’s heels is Andrew Wellington and Jeff Keswin of Lyrical Asset Management, with a $79.6 million position; the fund has 1% of its 13F portfolio invested in the stock. Other peers that hold long positions contain Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Millennium Management and Alexander Roepers’s Atlantic Investment Management. In terms of the portfolio weights assigned to each position Atlantic Investment Management allocated the biggest weight to O-I Glass, Inc. (NYSE:OI), around 3.14% of its 13F portfolio. Abrams Capital Management is also relatively very bullish on the stock, earmarking 2.16 percent of its 13F equity portfolio to OI.
Now, specific money managers were leading the bulls’ herd. Schonfeld Strategic Advisors, managed by Ryan Tolkin (CIO), initiated the biggest call position in O-I Glass, Inc. (NYSE:OI). Schonfeld Strategic Advisors had $7.1 million invested in the company at the end of the quarter. Andrew Kurita’s Kettle Hill Capital Management also initiated a $6.9 million position during the quarter. The other funds with brand new OI positions are Ken Griffin’s Citadel Investment Group, Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors, and Lee Ainslie’s Maverick Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as O-I Glass, Inc. (NYSE:OI) but similarly valued. These stocks are Glaukos Corporation (NYSE:GKOS), First Financial Bancorp (NASDAQ:FFBC), Hillman Solutions Corp. (NASDAQ:HLMN), Telephone & Data Systems, Inc. (NYSE:TDS), Astra Space Inc. (NASDAQ:ASTR), D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi (NASDAQ:HEPS), and Criteo SA (NASDAQ:CRTO). This group of stocks’ market caps are similar to OI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GKOS | 23 | 176344 | 4 |
| FFBC | 7 | 10840 | 0 |
| HLMN | 25 | 481224 | 25 |
| TDS | 19 | 120636 | 1 |
| ASTR | 13 | 85412 | 1 |
| HEPS | 7 | 14494 | 7 |
| CRTO | 13 | 167551 | -3 |
| Average | 15.3 | 150929 | 5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.3 hedge funds with bullish positions and the average amount invested in these stocks was $151 million. That figure was $259 million in OI’s case. Hillman Solutions Corp. (NASDAQ:HLMN) is the most popular stock in this table. On the other hand First Financial Bancorp (NASDAQ:FFBC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks O-I Glass, Inc. (NYSE:OI) is more popular among hedge funds. Our overall hedge fund sentiment score for OI is 90. 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 gained 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately OI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on OI were disappointed as the stock returned -22.4% since the end of the third quarter (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
Follow O-I Glass Inc. (NYSE:OI)
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Disclosure: None. This article was originally published at Insider Monkey.
