Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 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 Berry Global Group Inc (NYSE:BERY) in this article.
Is Berry Global Group Inc (NYSE:BERY) the right investment to pursue these days? Prominent investors were in a bullish mood. The number of bullish hedge fund bets advanced by 2 recently. Berry Global Group Inc (NYSE:BERY) was in 39 hedge funds’ portfolios at the end of September. The all time high for this statistic is 53. Our calculations also showed that BERY isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 37 hedge funds in our database with BERY positions at the end of the second quarter.
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. Now let’s go over the key hedge fund action regarding Berry Global Group Inc (NYSE:BERY).
Thomas Claugus of GMT Capital
Do Hedge Funds Think BERY Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 39 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from one quarter earlier. By comparison, 43 hedge funds held shares or bullish call options in BERY a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Eminence Capital held the most valuable stake in Berry Global Group Inc (NYSE:BERY), which was worth $256.1 million at the end of the third quarter. On the second spot was Lyrical Asset Management which amassed $160.2 million worth of shares. Canyon Capital Advisors, Two Creeks Capital Management, and GMT Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Monarch Alternative Capital allocated the biggest weight to Berry Global Group Inc (NYSE:BERY), around 17.15% of its 13F portfolio. Bayberry Capital Partners is also relatively very bullish on the stock, designating 12.63 percent of its 13F equity portfolio to BERY.
Consequently, specific money managers have jumped into Berry Global Group Inc (NYSE:BERY) headfirst. Appian Way Asset Management, managed by Andrew Byington, initiated the most outsized position in Berry Global Group Inc (NYSE:BERY). Appian Way Asset Management had $16.3 million invested in the company at the end of the quarter. Jinghua Yan’s TwinBeech Capital also made a $1.9 million investment in the stock during the quarter. The following funds were also among the new BERY investors: Greg Eisner’s Engineers Gate Manager, D. E. Shaw’s D E Shaw, and Peter Algert’s Algert Global.
Let’s check out hedge fund activity in other stocks similar to Berry Global Group Inc (NYSE:BERY). We will take a look at Aspen Technology, Inc. (NASDAQ:AZPN), Zynga Inc (NASDAQ:ZNGA), The Western Union Company (NYSE:WU), Sealed Air Corporation (NYSE:SEE), Under Armour Inc (NYSE:UA), Rexford Industrial Realty Inc (NYSE:REXR), and Phillips 66 Partners LP (NYSE:PSXP). This group of stocks’ market valuations resemble BERY’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AZPN | 20 | 620030 | -3 |
| ZNGA | 52 | 603900 | 3 |
| WU | 27 | 234768 | -4 |
| SEE | 33 | 626876 | 5 |
| UA | 48 | 1643556 | -3 |
| REXR | 29 | 358442 | 8 |
| PSXP | 5 | 31682 | 0 |
| Average | 30.6 | 588465 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.6 hedge funds with bullish positions and the average amount invested in these stocks was $588 million. That figure was $1246 million in BERY’s case. Zynga Inc (NASDAQ:ZNGA) is the most popular stock in this table. On the other hand Phillips 66 Partners LP (NYSE:PSXP) is the least popular one with only 5 bullish hedge fund positions. Berry Global Group Inc (NYSE:BERY) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BERY is 65.2. 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. Hedge funds were also right about betting on BERY as the stock returned 13.4% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Berry Global Group Inc. (NYSE:BERY)
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Disclosure: None. This article was originally published at Insider Monkey.
