Rhizome Partners, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund generated a 4.8% net loss compared to a 4.9% loss for the S&P 500 Index and a 10.8% loss for the National Association of Real Estate Investment Trusts (NAREIT). The hedging efforts of the fund generated a gain of 2.9% during the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Rhizome Partners highlighted stocks like Ardagh Metal Packaging S.A. (NYSE:AMBP) in its Q3 2022 investor letter. Headquartered in Luxembourg, Luxembourg, Ardagh Metal Packaging S.A. (NYSE:AMBP) is a metal beverage can supplier. On December 6, 2022, Ardagh Metal Packaging S.A. (NYSE:AMBP) stock closed at $4.6000 per share. One-month return of Ardagh Metal Packaging S.A. (NYSE:AMBP) was 4.55% and its shares lost 51.58% of their value over the last 52 weeks. Ardagh Metal Packaging S.A. (NYSE:AMBP) has a market capitalization of $2.774 billion.
Rhizome Partners made the following comment about Ardagh Metal Packaging S.A. (NYSE:AMBP) in its Q3 2022 investor letter:
“Ardagh Metal Packaging S.A. (NYSE:AMBP) is most exposed to the economic crisis in Europe, with one-third of its EBITDA generated in Europe. Over the summer, there was serious concern about how Europe could source enough energy this winter. Europe has been stockpiling coal and natural gas and creating contingency plans. This is still a concern that we monitor, but it is hard to imagine Ardagh Meal Packing being cut off from power. In the long run, the aluminum can packaging industry is a rational oligopoly that will adjust supply to market demand. All four players—Ball Corporation, Crown Holdings, Ardagh Metal Packaging, and CanPack—are poised to earn high returns on invested capital. In the short term, the timing of the pass-through of input costs and challenges in the European market have temporarily impacted cash flow. Ardagh Metal Packaging’s debt is fixed and termed out, with the nearest maturity in 2027. The company continues to generate a prodigious amount of cash flow, as all packaging companies do through all economic cycles. In addition, we are now receiving an 8.3% dividend, which we will reinvest into additional shares or other investment opportunities.”
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Ardagh Metal Packaging S.A. (NYSE:AMBP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Ardagh Metal Packaging S.A. (NYSE:AMBP) at the end of the third quarter, which was 25 in the previous quarter.
We discussed Ardagh Metal Packaging S.A. (NYSE:AMBP) in another article and reviewed Canyon Capital’s stock picks. In addition, please check out our hedge fund investor letters Q3 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.
