Rhizome Partners, an investment management firm, has released its third quarter 2022 letter to investors. A copy of it can be downloaded here. In the third quarter, the fund generated a net loss of 4.8%, compared to a loss of 4.9% for the S&P 500 index and a loss of 10.8% for the National Association of Real Estate Investment Trusts (NAREIT ). The fund’s hedging efforts generated a gain of 2.9% during the quarter. Additionally, you can check out the fund’s top 5 holdings for its top picks in 2022.
Rhizome Partners highlighted stocks like Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 letter to investors. Evansville, Indiana-based Berry Global Group, Inc. (NYSE:BERY) provides packaging products to consumer and industrial end markets. On December 6, 2022, Berry Global Group, Inc. (NYSE:BERY) stock closed at $61.47 per share. Berry Global Group, Inc.’s (NYSE:BERY) one-month return was 25.68% and its shares have lost 14.53% of their value over the past 52 weeks. Berry Global Group, Inc. (NYSE:BERY) has a market capitalization of $7.628 billion.
Rhizome Partners made the following comment about Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 letter to investors:
“Berry Global Group, Inc. (NYSE:BERY) posted strong quarterly results and continues to generate a prodigious amount of EBITDA (earnings before interest, taxes, depreciation and amortization) and free cash flow. For calendar year 2022, free cash flow will be $150 million below normal run rate, primarily due to increased working capital. At the end of the quarter, Berry Global is trading at 6.5 times 2022 P/FCF (price to free cash flow), with a net debt to EBITDA of 3.9 times, which is the lowest in recent years. Berry has a 35% revenue exposure to Europe and approximately 30% revenue exposure to industrial end markets. Everyday staples, such as shampoos and food wraps, account for 70% of Berry’s products. During the Great Financial Crisis, plastic packaging companies with Berry’s product mix experienced declines of less than 10% in EBITDA. Finally, Berry has repurchased 8% of outstanding shares over the past three quarters. We feel very comfortable with the company.
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Berry Global Group, Inc. (NYSE:BERY) is not on our list of the 30 most popular stocks among hedge funds. According to our database, 45 hedge fund portfolios held Berry Global Group, Inc. (NYSE:BERY) at the end of the third quarter, up from 37 in the prior quarter.
We discussed Berry Global Group, Inc. (NYSE:BERY) in another post and shared the list of trending stocks on November 15. leading investors.
Disclosure: none. This article originally appeared on Insider Monkey.