Upslope Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of -0.3% was recorded by the fund for the first quarter of 2022, compared to the S&P Midcap 400 ETF and the HFRX Equity Hedge Index that delivered -5.0% and -0.3% gains for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Upslope Capital mentioned Silgan Holdings Inc. (NASDAQ:SLGN) and explained its insights for the company. Founded in 1987 Silgan Holdings Inc. (NASDAQ:SLGN) is a Stamford, Connecticut-based rigid packaging company with a $4.9 billion market capitalization. Silgan Holdings Inc. (NASDAQ:SLGN) delivered a 3.94% return since the beginning of the year, while its 12-month returns are up by 2.82%. The stock closed at $44.53 per share on April 25, 2022.
Here is what Upslope Capital has to say about Silgan Holdings Inc. (NASDAQ:SLGN) in its Q1 2022 investor letter:
“Silgan is a one-foot hurdle. The company grows modestly and consistently – largely through M&A – and the stock is obviously cheap (12x EPS, 9% FCF yield) on an absolute and relative basis. Shares should perform well in a variety of the most likely environments and represent an opportunity to own a stock that is at once defensive/non-cyclical and cheap. The company has three segments: Metal Containers (food cans, which is what SLGN is most known for and proactively shifted away from in recent years; 40%+ of operating income), Dispensing & Specialty Closures (plastic/metal caps and dispensing systems/sprayers; 40%+ of operating income), and Plastic Containers (15% of operating income). In 2020, SLGN acquired Albéa’s dispensing business (a key competitor of Aptar’s – one of Upslope’s longstanding Core longs).
While very much a traditional value stock (i.e. not exactly “quality”), I could foresee owning shares longer- term as SLGN has quietly positioned itself in recent years as a PE-style packaging platform that happens to be publicly traded. Management has historically been disciplined capital allocators, pivoting away from the slowly-melting-ice-cube that is food cans (now < 50% of revenue)…” (Click here to see the full text)
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Our calculations show that Silgan Holdings Inc. (NASDAQ:SLGN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Silgan Holdings Inc. (NASDAQ:SLGN) was in 15 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 14 funds in the previous quarter. Silgan Holdings Inc. (NASDAQ:SLGN) delivered a 7.79 return in the past 3 months.
In March 2022, we published an article that includes Silgan Holdings Inc. (NASDAQ:SLGN) in 10 Safe Dividend Stocks to Buy Today. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
