The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th, about a month before the elections. We at Insider Monkey have made an extensive database of more than 817 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Tupperware Brands Corporation (NYSE:TUP) based on those filings.
Is TUP a good stock to buy now? Tupperware Brands Corporation (NYSE:TUP) investors should pay attention to an increase in hedge fund interest of late. Tupperware Brands Corporation (NYSE:TUP) was in 18 hedge funds’ portfolios at the end of September. The all time high for this statistic is 25. Our calculations also showed that TUP isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Now let’s take a look at the key hedge fund action regarding Tupperware Brands Corporation (NYSE:TUP).
Do Hedge Funds Think TUP Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2020, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 38% from the second quarter of 2020. Below, you can check out the change in hedge fund sentiment towards TUP over the last 21 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, D E Shaw was the largest shareholder of Tupperware Brands Corporation (NYSE:TUP), with a stake worth $36.7 million reported as of the end of September. Trailing D E Shaw was Archon Capital Management, which amassed a stake valued at $25.9 million. Melvin Capital Management, Citadel Investment Group, and Renaissance Technologies were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Archon Capital Management allocated the biggest weight to Tupperware Brands Corporation (NYSE:TUP), around 5.21% of its 13F portfolio. SG Capital Management is also relatively very bullish on the stock, designating 0.46 percent of its 13F equity portfolio to TUP.
As one would reasonably expect, key money managers were breaking ground themselves. Melvin Capital Management, managed by Gabriel Plotkin, assembled the largest position in Tupperware Brands Corporation (NYSE:TUP). Melvin Capital Management had $18.1 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $1.6 million position during the quarter. The other funds with brand new TUP positions are Parvinder Thiara’s Athanor Capital, Michael Gelband’s ExodusPoint Capital, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s check out hedge fund activity in other stocks similar to Tupperware Brands Corporation (NYSE:TUP). We will take a look at Eventbrite, Inc. (NYSE:EB), Nkarta, Inc. (NASDAQ:NKTX), KKR Real Estate Finance Trust Inc. (NYSE:KREF), Trinseo S.A. (NYSE:TSE), Sally Beauty Holdings, Inc. (NYSE:SBH), Signet Jewelers Limited (NYSE:SIG), and Kite Realty Group Trust (NYSE:KRG). This group of stocks’ market caps resemble TUP’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $171 million. That figure was $109 million in TUP’s case. Sally Beauty Holdings, Inc. (NYSE:SBH) is the most popular stock in this table. On the other hand KKR Real Estate Finance Trust Inc. (NYSE:KREF) is the least popular one with only 6 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. Our overall hedge fund sentiment score for TUP is 60.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through December 14th and still beat the market by 15.8 percentage points. Hedge funds were also right about betting on TUP as the stock returned 49.9% since the end of Q3 (through 12/14) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.