We at Insider Monkey have gone over 873 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article, we look at what those funds think of Crown Holdings, Inc. (NYSE:CCK) based on that data.
Crown Holdings, Inc. (NYSE:CCK) investors should pay attention to a decrease in hedge fund sentiment lately. Crown Holdings, Inc. (NYSE:CCK) was in 53 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 63. There were 60 hedge funds in our database with CCK holdings at the end of March. Our calculations also showed that CCK isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, billionaire John Paulson is loading up on the miners, so we are checking out stock pitches like this mining stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s view the recent hedge fund action regarding Crown Holdings, Inc. (NYSE:CCK).
Do Hedge Funds Think CCK Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 53 of the hedge funds tracked by Insider Monkey were long this stock, a change of -12% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CCK over the last 24 quarters. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
Among these funds, Lyrical Asset Management held the most valuable stake in Crown Holdings, Inc. (NYSE:CCK), which was worth $328.8 million at the end of the second quarter. On the second spot was Southpoint Capital Advisors which amassed $154.6 million worth of shares. Maverick Capital, D E Shaw, and 40 North Management 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 SAYA Management allocated the biggest weight to Crown Holdings, Inc. (NYSE:CCK), around 16.32% of its 13F portfolio. Engle Capital is also relatively very bullish on the stock, dishing out 12.47 percent of its 13F equity portfolio to CCK.
Since Crown Holdings, Inc. (NYSE:CCK) has faced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of funds that elected to cut their positions entirely in the second quarter. Intriguingly, Benjamin Pass’s TOMS Capital cut the biggest position of the 750 funds watched by Insider Monkey, valued at close to $78.1 million in stock. Martin D. Sass’s fund, MD Sass, also sold off its stock, about $30.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 7 funds in the second quarter.
Let’s check out hedge fund activity in other stocks similar to Crown Holdings, Inc. (NYSE:CCK). These stocks are IAC/InterActiveCorp (NASDAQ:IAC), Tuya Inc. (NYSE:TUYA), RLX Technology Inc. (NYSE:RLX), CureVac N.V. (NASDAQ:CVAC), Whirlpool Corporation (NYSE:WHR), American Airlines Group Inc (NASDAQ:AAL), and Centrais Eletricas Brasileiras SA (NYSE:EBR). All of these stocks’ market caps are closest to CCK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IAC | 50 | 1226152 | -13 |
| TUYA | 8 | 224184 | -7 |
| RLX | 12 | 192836 | -11 |
| CVAC | 12 | 24977 | 3 |
| WHR | 32 | 1175762 | 4 |
| AAL | 25 | 620239 | -7 |
| EBR | 5 | 3151 | 0 |
| Average | 20.6 | 495329 | -4.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.6 hedge funds with bullish positions and the average amount invested in these stocks was $495 million. That figure was $1981 million in CCK’s case. IAC/InterActiveCorp (NASDAQ:IAC) is the most popular stock in this table. On the other hand Centrais Eletricas Brasileiras SA (NYSE:EBR) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Crown Holdings, Inc. (NYSE:CCK) is more popular among hedge funds. Our overall hedge fund sentiment score for CCK is 73.2. 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 29.6% in 2021 through November 5th and still beat the market by 3.1 percentage points. Unfortunately CCK wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CCK were disappointed as the stock returned 4.9% since the end of the second quarter (through 11/5) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
