Heartland Advisors, an investment management company, released its “Heartland Opportunistic Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 13.42% Net of Advisory Fees compared to the Russell 3000 Value Index’s 12.18% return. The robust stock selection in the Information Technology and Healthcare sectors drove the strategy to outperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Heartland Opportunistic Value Equity Strategy highlighted stocks like Packaging Corporation of America (NYSE:PKG) in its Q4 2022 investor letter. Headquartered in Lake Forest, Illinois, Packaging Corporation of America (NYSE:PKG) is a containerboard and corrugated packaging products manufacturer. On March 9, 2023, Packaging Corporation of America (NYSE:PKG) stock closed at $135.60 per share. One-month return of Packaging Corporation of America (NYSE:PKG) was -3.09%, and its shares lost 9.45% of their value over the last 52 weeks. Packaging Corporation of America (NYSE:PKG) has a market capitalization of $12.162 billion.
Heartland Opportunistic Value Equity Strategy made the following comment about Packaging Corporation of America (NYSE:PKG) in its Q4 2022 investor letter:
“Packaging Corporation of America (NYSE:PKG) is the third-largest producer of containerboard and corrugated packaging in North America. Packaging production and pricing is highly correlated to economic activity, so it’s no surprise that PKG is off more than 20% from its April 2022 all-time high. The stock actually held up longer than expected, in part because there was a substantial amount of double ordering by PKG customers in the aftermath of the COVID-19 disruptions. Now that supplies are elevated, it will require lower production and demand stabilization to work off the extra inventory.
Though the company’s earnings are expected to fall by around 20% next year, we think PKG could generate close to $500 million in free cash flow. Meanwhile, investor sentiment is likely to improve as the market comes to grips with the economic slowdown, and our best guess is that PKG can work off its excess inventory in the first half of 2023.”
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Packaging Corporation of America (NYSE:PKG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Packaging Corporation of America (NYSE:PKG) at the end of the fourth quarter which was 27 in the previous quarter.
We discussed Packaging Corporation of America (NYSE:PKG) in another article and shared list of best stocks to buy for retirement. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
