Ranpak Holdings (PACK) Has Risen 62% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Upslope Capital Management’s top stock picks. Upslope Capital Management, an investment management firm, is bearish on Ranpak Holdings Corp. (NYSE:PACK) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Ranpak Holdings Corp. (NYSE:PACK) stock. Ranpak Holdings Corp. (NYSE:PACK) manufactures machines and paper products used in protective paper-based packing for shipping goods and merchandise for e-commerce and industry.

On July 15, 2019, Upslope Capital Management had released its Q2 2019 investor letter. Ranpak Holdings Corp. (NYSE:PACK) stock has posted a return of 61.9% in the trailing one year period, outperforming the S&P 500 Index which returned 16.5% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Ranpak Holdings Corp. (NYSE:PACK) stock has risen by 16.8%.

In Q2 2019 investor letter, Upslope Capital Management said the fund posted a return of 7.8% in the second quarter of 2019, outperforming the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by Upslope Capital Management about Ranpak Holdings Corp. (NYSE:PACK) stock in the Q2 2019 investor letter.

“New Short – Ranpak Holdings (PACK): Ranpak is a packaging business recently brought public via SPAC (special purpose acquisition co) after being owned by four private equity firms over the preceding 16 years. There are lots of red flags: PACK is an over-levered (6x) crumpled paper company4 being pitched by management as a growthy, “green,” asset-light play on e-commerce (among other investment buzzwords du jour – “internet of things” is even mentioned in the investor deck). Management pushes the most aggressive adjustments to free cash flow we have ever seen in covering the packaging sector. The stock appears generously-valued, considering the issues noted. Upside should be further limited by a significant dilution overhang.”

In Q1 2020, the number of bullish hedge fund positions on Ranpak Holdings Corp. (NYSE:PACK) stock decreased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Ranpak’s downside potential. Our calculations showed that Ranpak Holdings Corp. (NYSE:PACK) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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