Rhizome Partners, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net loss of 1.7% was delivered by the fund for the third quarter of 2021, versus the 0.6% gain of the S&P 500 index and 0.2% gain of the NAREIT index for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Rhizome Partners, in its Q3 2021 investor letter, mentioned Berry Global Group, Inc. (NYSE: BERY) and discussed its stance on the firm. Berry Global Group, Inc. is an Evansville, Indiana-based manufacturing company with an $8.8 billion market capitalization. BERY delivered a 15.96% return since the beginning of the year, while its 12-month returns are up by 20.80%. The stock closed at $65.16 per share on November 24, 2021.
Here is what Rhizome Partners has to say about Berry Global Group, Inc. in its Q3 2021 investor letter:
“Berry Global does what Berry Global does well. It generates a good chunk of cash flow. Building on our Berry Global experience, we built a 3% position in the SPAC warrants of Gores Holdings V. The company purchased the aluminum-packaging business of Ardagh and now trades as Ardagh Metal Packaging. Unlike most SPACs, Gores has a track record of achieving its EBITDA forecast. Ardagh Metal trades at a significant discount to Ball Corporation and has more exposure to higher-margin specialty cans. We believe the SPAC warrants have 3-4x upside and the common stock has the potential to double. The company may force us to exchange the warrants for common shares at a premium. In that case, our upside will be capped at about a triple.”
Based on our calculations, Berry Global Group, Inc. (NYSE: BERY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. BERY was in 39 hedge fund portfolios at the end of the third quarter of 2021, compared to 37 funds in the previous quarter. Berry Global Group, Inc. (NYSE: BERY) delivered a -3.21% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.