Do Hedge Funds Love GATX Corporation (GATX)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Interestingly, Jacob Gottlieb’s Visium Asset Management sold off the biggest stake of all the hedgies studied by Insider Monkey, totaling an estimated $5.1 million in call options. Anand Parekh’s fund, Alyeska Investment Group, also dropped its stock, about $1.9 million worth.

Let’s check out hedge fund activity in other stocks similar to GATX Corporation (NYSE:GATX). These stocks are 2U Inc (NASDAQ:TWOU), NovaGold Resources Inc. (USA) (NYSEAMEX:NG), The Geo Group, Inc. (NYSE:GEO), and Talen Energy Corp (NYSE:TLN). This group of stocks’ market values resemble GATX’s market value.

As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $179 million. That figure was $175 million in GATX’s case. NovaGold Resources Inc. (USA) (NYSEAMEX:NG) is the most popular stock in this table. On the other hand The Geo Group, Inc. (NYSE:GEO) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks GATX Corporation (NYSE:GATX) is even less popular than GEO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None