Hedge Funds Right About Sonoco Products Company (SON) As Slide Continues Following Earnings Miss

How have hedgies been trading Sonoco Products Company (NYSE:SON)?

Heading into the second quarter, a total of 17 hedge funds tracked by Insider Monkey held long positions in this stock, as compared to 20 funds one quarter earlier. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.

When looking at the hedgies followed by Insider Monkey, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Sonoco Products Company (NYSE:SON). Royce & Associates has a $15.5 million position in the stock, comprising 0.1% of its 13F portfolio. The second-largest stake is held by Citadel Investment Group, led by Ken Griffin, holding a $15.4 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Further members of the smart money that are bullish encompass Israel Englander‘s Millennium Management, Cliff Asness’ AQR Capital Management, and Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital.

Because Sonoco Products Company (NYSE:SON) has faced falling interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedgies that decided to sell off their full holdings in the March quarter. It’s worth mentioning that Joel Greenblatt‘s Gotham Asset Management cut the biggest stake of the “upper crust” of funds watched by Insider Monkey, totaling close to $6.1 million in stock. David E. Shaw’s fund, D E Shaw, also dropped its holding, about $1.1 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest dropped by three funds last quarter.

A disappointing outlook and bearish hedge fund sentiment suggest a long recovery time for Sonoco Products Company (NYSE:SON). We would advise investors to look for other opportunities in the sector.

Disclosure: None