Bonhoeffer Capital Management, an asset management company, released its third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -13.7% net of fees, compared to a -10.0% return for its closest benchmark DFA International Small Cap Value Fund, and a -10.9% return for the broad-based index, the MSCI World ex-US. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Bonhoeffer Capital Management highlighted stocks like Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 investor letter. Headquartered in Evansville, Indiana, Berry Global Group, Inc. (NYSE:BERY) supplies packaging products in consumer and industrial end markets. On December 12, 2022, Berry Global Group, Inc. (NYSE:BERY) stock closed at $60.98 per share. One-month return of Berry Global Group, Inc. (NYSE:BERY) was 15.17% and its shares lost 12.59% of their value over the last 52 weeks. Berry Global Group, Inc. (NYSE:BERY) has a market capitalization of $7.568 billion.
Bonhoeffer Capital Management made the following comment about Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 investor letter:
“Berry Global Group, Inc. (NYSE:BERY) is the largest rigid and flexible plastic and nonwovens packaging firm serving home, health and personal care, and food and beverage customers located in the United States, Europe, and emerging markets. BERY is part of Bonhoeffer’s consolidation theme and has characteristics of a public LBO. BERY is the Rodney Dangerfield of plastic packaging firms in that they have reduced debt to peer levels and the valuation of 7.3x earnings has not rerated to peer levels of 13-14x earnings. Over time, as BERY repurchases shares, the rerating should accelerate.
BERY is consolidating the plastic and nonwoven packaging industry in the US, European, and emerging markets. BERY has historically been the low-cost producer of the packaging market. In 2019, BERY made its largest acquisition-RPC, a European-centered competitor whose focus was more on the custom portion of the packaging market-for $3.5 billion. BERY financed the acquisition with debt which increased BERY’s Debt/EBITDA to close to 5.3x. RPC increased BERY’s footprint in Europe, as well as in the emerging markets. BERY generates 50% of its revenue from the US and Canada, 35% from Europe, and 15% from emerging markets…”(Click here to read the full text)
Photo by Samantha Gades on Unsplash
Berry Global Group, Inc. (NYSE:BERY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Berry Global Group, Inc. (NYSE:BERY) at the end of the third quarter, which was 37 in the previous quarter.
We discussed Berry Global Group, Inc. (NYSE:BERY) in another article and shared Rhizome Partners’ views on the company. 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.
