Should You Now Consider Selling Your Berry Global Group (BERY) Stake?

Baron Funds, an asset management firm, published its “Baron Small Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Small Cap Fund (the “Fund”) was down 18.60% (Institutional Shares) in the second quarter. The Fund modestly outperformed the Russell 2000 Growth Index, which was down 19.25% for the period, but lagged the S&P 500 Index, which was down 16.10%. Year-to-date, the Fund is down 31.36%, which trailed the Russell 2000 Growth Index and the S&P 500 Index, which were down 29.45% and 19.96%, respectively. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Small Cap Fund mentioned Berry Global Group, Inc. (NYSE:BERY) and explained its insights for the company. Founded in 1967, Berry Global Group, Inc. (NYSE:BERY) is an Evansville, Indiana-based plastic packaging products manufacturer and marketer with a $7.2 billion market capitalization. Berry Global Group, Inc. (NYSE:BERY) delivered a -20.93% return since the beginning of the year, while its 12-month returns are down by -8.41%. The stock closed at $58.34 per share on September 12, 2022.

Here is what Baron Small Cap Fund has to say about Berry Global Group, Inc. (NYSE:BERY) in its Q2 2022 investor letter:

“During the quarter, we sold out of Berry Global Group, Inc., a plastic packaging company. The business has struggled to sustain organic EBITDA growth, and M&A, historically a hallmark of value creation, makes little sense at its current valuation. We held the stock for almost 10 years, generating an annualized return of 13.85%.”

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Our calculations show that Berry Global Group, Inc. (NYSE:BERY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Berry Global Group, Inc. (NYSE:BERY) was in 37 hedge fund portfolios at the end of the second quarter of 2022, compared to 42 funds in the previous quarter. Berry Global Group, Inc. (NYSE:BERY) delivered a 7.26% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on Berry Global Group, Inc. (NYSE:BERY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.