O-I Glass (OI) Stock May Not Rebound After Coronavirus

Bernzott Capital Advisors recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -32.76% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned -35.66% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Bernzott Capital Advisors highlighted a few stocks and O-I Glass Inc. (NYSE:OI) is one of them. O-I Glass specializes in container glass products. Year-to-date, OI stock lost 45.2% and on May 13th it had a closing price of $6.17. Its market cap is of $1.01 billion. Here is what Bernzott Capital Advisors said:

“O-I Glass (OI): We made a mistake with OI, the world’s leading bottle maker, which was bedeviled by: industry changes, operational challenges, execution misfires and increased leverage which combined to make it a turnaround. The position was sold.”

In Q4 2019, the number of bullish hedge fund positions on OI stock decreased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with OI’s downside potential.

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