Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Are Buying Tupperware Brands Corporation (TUP)

Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Tupperware Brands Corporation (NYSE:TUP) from the perspective of those elite funds.

Tupperware Brands Corporation (NYSE:TUP) was in 25 hedge funds’ portfolios at the end of September. TUP investors should pay attention to an increase in hedge fund sentiment of late. There were 14 hedge funds in our database with TUP holdings at the end of the previous quarter. At the end of this article we will also compare TUP to other stocks including LifePoint Hospitals, Inc. (NASDAQ:LPNT), Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), and Nabors Industries Ltd. (NYSE:NBR) to get a better sense of its popularity.

Follow Tupperware Brands Corp (NYSE:TUP)
Trade (NYSE:TUP) Now!

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

makeup, bright, closeup, table, nobody, eyeshadow, applicator, glamour, light, foundation, feminine, female, blush, palette, lipstick, decorative, shiny, collection, face,

Africa Studio/Shutterstock.com

Now, let’s review the new action surrounding Tupperware Brands Corporation (NYSE:TUP).

What have hedge funds been doing with Tupperware Brands Corporation (NYSE:TUP)?

At the end of the third quarter, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a massive jump of 79% from the second quarter of 2016. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).

HedgeFundSentimentChart

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Joe Huber’s Huber Capital Management has the most valuable position in Tupperware Brands Corporation (NYSE:TUP), worth close to $84.1 million and comprising 3.3% of its total 13F portfolio. The second largest stake is held by Jeffrey Bronchick of Cove Street Capital, with a $18.3 million position; 2% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish contain Cliff Asness’s AQR Capital Management, and Anthony Scaramucciá’s Skybridge Capital.

Now, specific money managers were leading the bulls’ herd. Jeffrey Bronchick’ Cove Street Capital created the most outsized position in Tupperware Brands Corporation (NYSE:TUP). Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $9.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management, and Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks similar to Tupperware Brands Corporation (NYSE:TUP). These stocks are LifePoint Hospitals, Inc. (NASDAQ:LPNT), Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), Nabors Industries Ltd. (NYSE:NBR), and Avista Corp (NYSE:AVA). This group of stocks’ market values are similar to TUP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LPNT 16 192333 -6
SBGI 32 346772 -1
NBR 30 422646 4
AVA 9 56026 -3

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $254 million. That figure was $196 million in TUP’s case. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is the most popular stock in this table. On the other hand Avista Corp (NYSE:AVA) is the least popular one with only 9 bullish hedge fund positions. Tupperware Brands Corporation (NYSE:TUP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SBGI might be a better candidate to consider a long position.

Disclsoure: none.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...