Here’s Why NZS Capital Sold Ball Corporation (BALL)

NZS Capital, LLC, an investment management company, released its “NZS Growth Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The flagship strategy was up 16% (net) compared to 11% for the Morningstar Global Target Market Exposure (NR) index. An increasing consensus on rate cuts in 2024 created a positive backdrop for growth equities. The Magnificent Seven, who had outperformed the market for three quarters, fared similarly in the fourth quarter, benefiting active managers who avoided chasing momentum bets. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

NZS Capital featured stocks such as Ball Corporation (NYSE:BALL) in the fourth quarter 2023 investor letter. Headquartered in Westminster, Colorado, Ball Corporation (NYSE:BALL) is an aluminum packaging products supplier. On February 9, 2024, Ball Corporation (NYSE:BALL) stock closed at $59.17 per share. One-month return of Ball Corporation (NYSE:BALL) was 4.99%, and its shares gained 5.81% of their value over the last 52 weeks. Ball Corporation (NYSE:BALL) has a market capitalization of $18.656 billion.

NZS Capital stated the following regarding Ball Corporation (NYSE:BALL) in its fourth quarter 2023 investor letter:

“We sold stocks where the thesis did not work out as we expected. We exited longtime holding Ball Corporation (NYSE:BALL) because we felt the long-term range of outcomes for aluminum can demand had widened to the point the business no longer fit in resilience. We wonder if, in addition to short-term issues, lower demand for beer cans reflects structural changes from demographic preferences, including a greater focus on health.”

A shipping container filled with freshly-produced aluminum cans ready for distribution.

Ball Corporation (NYSE:BALL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Ball Corporation (NYSE:BALL) at the end of third quarter which was 27 in the previous quarter.

We discussed Ball Corporation (NYSE:BALL) in another article and shared Conestoga Mid Cap Composite’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.