Does the Current Market Price of Graphic Packaging Holding Company (GPK) Provide a Good Investment Opportunity?
L1 Capital, an investment management firm, released its “L1 Capital International Fund” second quarter 2023 investor letter, a copy of the same can be downloaded here. In the June 2023 quarter, the fund returned 9.0% (net of fees) outperforming the benchmark's (MSCI World Net Total Return Index in AUD) 7.5% return. The Fund and Benchmark’s Australian dollar reported quarterly returns increased as AUD depreciated 1.0% against the U.S. dollar and depreciated 0.9% against the Euro. The Fund returned 25.5% (net of fees), outperforming the Benchmark’s return of 22.4% by 3.1% (all in Australian dollars) for the year ended 30 June 2023. Please check the top five holdings of the fund to know its best picks in 2023.
L1 Capital International Fund highlighted stocks like Graphic Packaging Holding Company (NYSE:GPK) in the second quarter 2023 investor letter. Headquartered in Atlanta, Georgia, Graphic Packaging Holding Company (NYSE:GPK) is a paper-based packaging solutions provider. On July 26, 2023, Graphic Packaging Holding Company (NYSE:GPK) stock closed at $23.95 per share. One-month return of Graphic Packaging Holding Company (NYSE:GPK) was -0.29%, and its shares gained 7.16% of their value over the last 52 weeks. Graphic Packaging Holding Company (NYSE:GPK) has a market capitalization of $7.439 billion.
L1 Capital International Fund made the following comment about Graphic Packaging Holding Company (NYSE:GPK) in its second quarter 2023 investor letter:
“As a child, I am sure you tossed a coin and called out “Heads I win, tails you lose!” – seemed witty at the time. At today’s share price we believe Graphic Packaging Holding Company (NYSE:GPK) presents almost as good an investment opportunity – more like “Heads we win, tails we don’t lose!” We outlined the investment case for Graphic Packaging International in our June 2021 Quarterly Report and the substance of our views then remain current today. Right now the market is concerned about weakness in demand for paperboard packaging and medium-term increases in supply of paperboard. Both concerns are valid, but in our view are overly reflected in Graphic Packaging International’s share price.
Graphic Packaging International supplies the boxes used by food, beverages, household and personal care companies. Normally demand growth is modest but relatively stable, supported by a continuous environmentally driven shift away from plastic packaging, but it is not macro immune. Recently a number of consumer staples companies have reported weakening demand, as well as some destocking by retailers who are looking to better match demand with their inventory levels. These issues will impact Graphic Packaging International, but to a modest extent and only for a temporary period. Graphic Packaging International also benefits from supplying packaging for house brand products which are benefitting from trade-down by cost conscious consumers...” (Click here to read the full text)
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Graphic Packaging Holding Company (NYSE:GPK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Graphic Packaging Holding Company (NYSE:GPK) at the end of first quarter which was 41 in the previous quarter.
We discussed Graphic Packaging Holding Company (NYSE:GPK) in another article and shared the list of best packaging stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
