5 Stocks Canyon Capital Advisors Can’t Live Without

2. Berry Global Group Inc (NYSE:BERY)

Value of Canyon Capital Advisors’ 13F Position: $164 million

Number of Hedge Fund Shareholders: 42

Canyon Capital appears to be quite bullish on the state of the packaging industry, as it has large stakes in both Ardagh Metal Packaging S.A. (NYSE:AMBP) and Berry Global Group Inc (NYSE:BERY). When it comes to the latter, Canyon Capital raised the size of its BERY holding by 16% to 2.84 million shares during Q1, with the plastic packaging manufacturer ranking as its second-largest 13F long position.

Berry Global Group Inc (NYSE:BERY) was targeted by activist hedge fund Ancora Advisors in late 2021, with the fund pushing the company to explore strategic alternatives, including a sale. Ancora believed that Berry Global could fetch as much as $100 per share in a sale, close to double what the company’s shares currently trade for. The fund also called Berry’s plan to repurchase $50 million of its shares an insult to its investors and urged to company to instead buy back $1 billion worth.

Canyon Capital itself has also pressured Berry Global Group Inc (NYSE:BERY) to consider various options in the past, including the sale of some of its non-core assets with an eye on cutting the company’s debt. Berry Global has aggressively grown through M&A in recent years, which has supercharged its growth rate above the industry’s average, but also ballooned its debt.