How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don’t always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Berry Plastics Group Inc (NYSE:BERY).
Berry Plastics Group Inc (NYSE:BERY) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 47 hedge funds’ portfolios at the end of the third quarter of 2015. 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 Autohome Inc (ADR) (NYSE:ATHM), Seaboard Corp (NYSEMKT:SEB), and Umpqua Holdings Corp (NASDAQ:UMPQ) to gather more data points.
To the average investor, there is a multitude of indicators shareholders have at their disposal to assess publicly traded companies. A couple of the most underrated indicators are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the best money managers can outpace the broader indices by a very impressive amount (see the details here).
Now, let’s check out the latest action surrounding Berry Plastics Group Inc (NYSE:BERY).
How have hedgies been trading Berry Plastics Group Inc (NYSE:BERY)?
Heading into Q4, a total of 47 of the hedge funds tracked by Insider Monkey held long positions in this stock, same as the last quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Robert Polak’s Anchor Bolt Capital has the most valuable position in Berry Plastics Group Inc (NYSE:BERY), worth close to $151.4 million, amounting to 5% of its total 13F portfolio. Sitting at the No. 2 spot is Canyon Capital Advisors, managed by Joshua Friedman and Mitchell Julis, which holds a $121.4 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism include Steve Cohen’s Point72 Asset Management, Joshua Kaufman and Craig Nerenberg’s Brenner West Capital Partners, and Martin D. Sass’ MD Sass.