Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 750 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Silgan Holdings Inc. (NASDAQ:SLGN) in this article.
Is Silgan Holdings Inc. (NASDAQ:SLGN) a superb investment right now? The best stock pickers are turning bullish. The number of bullish hedge fund bets improved by 1 lately. Our calculations also showed that SLGN isn’t among the 30 most popular stocks among hedge funds. SLGN was in 15 hedge funds’ portfolios at the end of March. There were 14 hedge funds in our database with SLGN positions 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 40 percentage points since May 2014 through May 30, 2019 (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 30.9% through May 30, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Matthew Hulsizer of PEAK6 Capital
Let’s go over the key hedge fund action surrounding Silgan Holdings Inc. (NASDAQ:SLGN).
What does smart money think about Silgan Holdings Inc. (NASDAQ:SLGN)?
Heading into the second quarter of 2019, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from the previous quarter. On the other hand, there were a total of 16 hedge funds with a bullish position in SLGN a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Cardinal Capital, managed by Amy Minella, holds the number one position in Silgan Holdings Inc. (NASDAQ:SLGN). Cardinal Capital has a $92 million position in the stock, comprising 3.1% of its 13F portfolio. On Cardinal Capital’s heels is David Harding of Winton Capital Management, with a $21.7 million position; 0.4% of its 13F portfolio is allocated to the company. Some other peers that are bullish comprise Cliff Asness’s AQR Capital Management, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
As industrywide interest jumped, specific money managers have jumped into Silgan Holdings Inc. (NASDAQ:SLGN) headfirst. Gotham Asset Management, managed by Joel Greenblatt, established the biggest position in Silgan Holdings Inc. (NASDAQ:SLGN). Gotham Asset Management had $2.1 million invested in the company at the end of the quarter. Alec Litowitz and Ross Laser’s Magnetar Capital also initiated a $0.7 million position during the quarter. The other funds with new positions in the stock are Mike Vranos’s Ellington and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Silgan Holdings Inc. (NASDAQ:SLGN) but similarly valued. We will take a look at iRobot Corporation (NASDAQ:IRBT), Bank of Hawaii Corporation (NYSE:BOH), Lions Gate Entertainment Corporation (NYSE:LGF-A), and American National Insurance Company (NASDAQ:ANAT). All of these stocks’ market caps resemble SLGN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IRBT | 15 | 121719 | 1 |
| BOH | 12 | 126229 | -1 |
| LGF-A | 18 | 315578 | -3 |
| ANAT | 9 | 37272 | -6 |
| Average | 13.5 | 150200 | -2.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $150 million. That figure was $157 million in SLGN’s case. Lions Gate Entertainment Corporation (NYSE:LGF-A) is the most popular stock in this table. On the other hand American National Insurance Company (NASDAQ:ANAT) is the least popular one with only 9 bullish hedge fund positions. Silgan Holdings Inc. (NASDAQ:SLGN) 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately SLGN wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on SLGN were disappointed as the stock returned 0.9% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
