Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Sealed Air Corporation (NYSE:SEE), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is SEE a good stock to buy? Sealed Air Corporation (NYSE:SEE) has seen an increase in hedge fund interest of late. Sealed Air Corporation (NYSE:SEE) was in 33 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 49. There were 28 hedge funds in our database with SEE positions at the end of the second quarter. Our calculations also showed that SEE isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Michael Lowenstein of Kensico 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. Now let’s view the recent hedge fund action encompassing Sealed Air Corporation (NYSE:SEE).
Do Hedge Funds Think SEE Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 18% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in SEE over the last 25 quarters. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
Among these funds, Rivulet Capital held the most valuable stake in Sealed Air Corporation (NYSE:SEE), which was worth $176.3 million at the end of the third quarter. On the second spot was Kensico Capital which amassed $171.7 million worth of shares. Nitorum Capital, Impax Asset Management, and Citadel Investment Group 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 Rivulet Capital allocated the biggest weight to Sealed Air Corporation (NYSE:SEE), around 9.2% of its 13F portfolio. Kensico Capital is also relatively very bullish on the stock, dishing out 5.28 percent of its 13F equity portfolio to SEE.
As one would reasonably expect, some big names were leading the bulls’ herd. Tudor Investment Corp, managed by Paul Tudor Jones, created the most valuable position in Sealed Air Corporation (NYSE:SEE). Tudor Investment Corp had $7.5 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also initiated a $5.1 million position during the quarter. The other funds with new positions in the stock are Jinghua Yan’s TwinBeech Capital, Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management, and Qing Li’s Sciencast Management.
Let’s check out hedge fund activity in other stocks similar to Sealed Air Corporation (NYSE:SEE). These stocks are Under Armour Inc (NYSE:UA), Rexford Industrial Realty Inc (NYSE:REXR), Phillips 66 Partners LP (NYSE:PSXP), The Scotts Miracle-Gro Company (NYSE:SMG), Ralph Lauren Corporation (NYSE:RL), Pinnacle West Capital Corporation (NYSE:PNW), and Arrival (NASDAQ:ARVL). This group of stocks’ market valuations match SEE’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UA | 48 | 1643556 | -3 |
| REXR | 29 | 358442 | 8 |
| PSXP | 5 | 31682 | 0 |
| SMG | 30 | 257473 | -2 |
| RL | 25 | 444724 | -7 |
| PNW | 21 | 175044 | 3 |
| ARVL | 4 | 10081 | -13 |
| Average | 23.1 | 417286 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.1 hedge funds with bullish positions and the average amount invested in these stocks was $417 million. That figure was $627 million in SEE’s case. Under Armour Inc (NYSE:UA) is the most popular stock in this table. On the other hand Arrival (NASDAQ:ARVL) is the least popular one with only 4 bullish hedge fund positions. Sealed Air Corporation (NYSE:SEE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SEE is 63.2. 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 SEE 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 Sealed Air Corp (NYSE:SEE)
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Disclosure: None. This article was originally published at Insider Monkey.
