Does Avery Dennison Corp (NYSE:AVY) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.
Avery Dennison Corp (NYSE:AVY) was included in the equity portfolios of 30 hedge funds tracked by Insider Monkey at the end September. During the third quarter, the company saw an increase in activity from the world’s largest hedge funds, as the number of funds long the stock increased by four. However, the level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Shire PLC (ADR) (NASDAQ:SHPG), Signature Bank (NASDAQ:SBNY), and Allegion PLC (NYSE:ALLE) to gather more data points.
Follow Avery Dennison Corp (NYSE:AVY)
Follow Avery Dennison Corp (NYSE:AVY)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, let’s view the latest action encompassing Avery Dennison Corp (NYSE:AVY).
What does the smart money think about Avery Dennison Corp (NYSE:AVY)?
Heading into the fourth quarter of 2016, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on Avery Dennison Corp (NYSE:AVY), a change of 15% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Cliff Asness’ AQR Capital Management has the most valuable position in Avery Dennison Corp (NYSE:AVY), worth close to $167.9 million, amounting to 0.3% of its total 13F portfolio. Coming in second is Phill Gross and Robert Atchinson’s Adage Capital Management, which holds a $63.1 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors that hold long positions encompass Jim Simons’ Renaissance Technologies, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Israel Englander’s Millennium Management.
