Cooper Creek Partners is a New York-based investment manager specializing in a long/short equity-focused hedge fund, with an average net exposure of 8% since its inception in 2008. Founded by Rob Schwartz, formerly a partner at JL Advisors, the hedge fund has delivered 11.9% annual returns over the past 17 years. The $1.3 billion fund focuses on under-the-radar small small to mid cap stocks, targeting those with catalysts that could lead to a significant re-pricing of the stock.
Cooper Creek Partners in their Q3 letter to investors went in depth to explain their approach in a highly successful long position in a glass company. Cooper Creek saw a significant potential for the share value to rise due to a transformative process started by a new management.
It is important to note the industry is in a cyclical recovery in the medium term. The company is an industry leader in the glass packaging sector. Their production is differentiated between these markets:
- Beer - 32%
- Wine - 19%
- Food - 17%
- Spirits - 16%
- Non-alcoholic beverages - 16%.
The company has extensive market shares when looking at global outreach:
- Europe - 44% of sales
- Latin America - 30% of sales
- North America - 26% of sales.
New Management, With A New Plan
In recent years,
