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Is NYSE A Good Stock To Buy According To Hedge Funds?

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·5 min read
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The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Sealed Air Corporation (NYSE:SEE).

Is NYSE a good stock to buy? Sealed Air Corporation (NYSE:SEE) has experienced an increase in activity from the world's largest hedge funds lately. Sealed Air Corporation (NYSE:SEE) was in 31 hedge funds' portfolios at the end of September. The all time high for this statistic is 49. There were 28 hedge funds in our database with SEE holdings at the end of June. Our calculations also showed that SEE 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.

In the 21st century investor’s toolkit there are dozens of metrics stock market investors put to use to analyze their holdings. A pair of the most useful metrics are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the best investment managers can outclass their index-focused peers by a very impressive amount (see the details here).

Ricky Sandler of Eminence Capital

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 15 best blue chip stocks to buy 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 view the latest hedge fund action encompassing Sealed Air Corporation (NYSE:SEE).

Do Hedge Funds Think SEE Is A Good Stock To Buy Now?

At the end of September, a total of 31 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from one quarter earlier. On the other hand, there were a total of 34 hedge funds with a bullish position in SEE a year ago. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).

Among these funds, Rivulet Capital held the most valuable stake in Sealed Air Corporation (NYSE:SEE), which was worth $311.3 million at the end of the third quarter. On the second spot was Kensico Capital which amassed $201.1 million worth of shares. Eminence Capital, Nitorum Capital, and D E Shaw 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 Rivulet Capital allocated the biggest weight to Sealed Air Corporation (NYSE:SEE), around 16.95% of its 13F portfolio. One Fin Capital Management is also relatively very bullish on the stock, dishing out 5.59 percent of its 13F equity portfolio to SEE.

As one would reasonably expect, key hedge funds were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the biggest position in Sealed Air Corporation (NYSE:SEE). Arrowstreet Capital had $6.3 million invested in the company at the end of the quarter. Matthew Hulsizer's PEAK6 Capital Management also made a $2.8 million investment in the stock during the quarter. The following funds were also among the new SEE investors: Minhua Zhang's Weld Capital Management, Mika Toikka's AlphaCrest Capital Management, and Ray Dalio's Bridgewater Associates.

Let's now review hedge fund activity in other stocks similar to Sealed Air Corporation (NYSE:SEE). These stocks are Steel Dynamics, Inc. (NASDAQ:STLD), MKS Instruments, Inc. (NASDAQ:MKSI), OGE Energy Corp. (NYSE:OGE), National Retail Properties, Inc. (NYSE:NNN), Kilroy Realty Corp (NYSE:KRC), Credit Acceptance Corp. (NASDAQ:CACC), and Smartsheet Inc. (NYSE:SMAR). All of these stocks' market caps are closest to SEE's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position STLD,28,459515,-2 MKSI,35,313184,3 OGE,22,215851,-3 NNN,16,122717,-1 KRC,19,327802,-1 CACC,29,673470,6 SMAR,45,1661963,-2 Average,27.7,539215,0 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 27.7 hedge funds with bullish positions and the average amount invested in these stocks was $539 million. That figure was $934 million in SEE's case. Smartsheet Inc. (NYSE:SMAR) is the most popular stock in this table. On the other hand National Retail Properties, Inc. (NYSE:NNN) is the least popular one with only 16 bullish hedge fund positions. Sealed Air Corporation (NYSE:SEE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SEE is 52.8. 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 33.3% in 2020 through December 18th and still beat the market by 16.4 percentage points. Hedge funds were also right about betting on SEE as the stock returned 17.4% since the end of Q3 (through 12/18) 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.

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