Here is What Hedge Funds Think About Tupperware Brands Corporation (NYSE:TUP) – Sealed Air Corp (NYSE:SEE), Packaging Corp Of America (NYSE:PKG)

Tupperware Brands Corporation (NYSE:TUP) has seen an increase in activity from the world’s largest hedge funds of late.

In the eyes of most shareholders, hedge funds are viewed as underperforming, old investment vehicles of yesteryear. While there are more than 8000 funds trading at present, we at Insider Monkey choose to focus on the leaders of this club, about 450 funds. It is widely believed that this group has its hands on most of all hedge funds’ total asset base, and by keeping an eye on their highest performing investments, we have unsheathed a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Tupperware Brands CorporationEqually as important, bullish insider trading sentiment is another way to break down the world of equities. Just as you’d expect, there are many stimuli for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a look at the recent action regarding Tupperware Brands Corporation (NYSE:TUP).

How have hedgies been trading Tupperware Brands Corporation (NYSE:TUP)?

At year’s end, a total of 19 of the hedge funds we track were bullish in this stock, a change of 27% from the third quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.

When looking at the hedgies we track, East Side Capital (RR Partners), managed by Steven Richman, holds the biggest position in Tupperware Brands Corporation (NYSE:TUP). East Side Capital (RR Partners) has a $49 million position in the stock, comprising 2.7% of its 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $37 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include John Murphy’s Alydar Capital, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.

Consequently, some big names have been driving this bullishness. Alydar Capital, managed by John Murphy, created the largest position in Tupperware Brands Corporation (NYSE:TUP). Alydar Capital had 14 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $4 million position during the quarter. The other funds with brand new TUP positions are Noam Gottesman’s GLG Partners, Paul Tudor Jones’s Tudor Investment Corp, and Robert B. Gillam’s McKinley Capital Management.

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

Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past 180 days. Over the latest half-year time period, Tupperware Brands Corporation (NYSE:TUP) has experienced zero unique insiders buying, and 18 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Tupperware Brands Corporation (NYSE:TUP). These stocks are AptarGroup, Inc. (NYSE:ATR), Bemis Company, Inc. (NYSE:BMS), Sealed Air Corp (NYSE:SEE), Owens-Illinois Inc (NYSE:OI), and Packaging Corp Of America (NYSE:PKG). This group of stocks are the members of the packaging & containers industry and their market caps are closest to TUP’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
AptarGroup, Inc. (NYSE:ATR) 9 1 6
Bemis Company, Inc. (NYSE:BMS) 11 0 2
Sealed Air Corp (NYSE:SEE) 25 1 1
Owens-Illinois Inc (NYSE:OI) 27 3 3
Packaging Corp Of America (NYSE:PKG) 20 0 6

With the returns demonstrated by our time-tested strategies, retail investors should always monitor hedge fund and insider trading sentiment, and Tupperware Brands Corporation (NYSE:TUP) shareholders fit into this picture quite nicely.