Five Rental and Leasing Companies Hedge Funds Are Bullish On

#4. Ryder System Inc. (NYSE:R)

– Number of investors with long positions as of March 31: 21

– Aggregate value of investors’ holdings as of March 31: $293.92 Million

The number of asset managers from our system with long positions in Ryder System Inc. (NYSE:R) declined to 21 from 22 during the first quarter of 2016, whereas the dollar value of all those positions increased by 8% quarter-on-quarter to $293.92 million. The increase was mainly attributable to a gain of 15% in the value of Ryder shares, so hedge funds were running away from the company on aggregate. The shares of the trucking specialist have advanced 13% since the beginning of 2016. Ryder System, which mostly generates revenue by providing leasing, commercial rental and contract maintenance of trucks, tractors and trailers, reported total revenue of $1.63 billion for the first three months of 2016, which increased 4% year-over-year. The company’s bottom line increased by 6% year-over-year to $55.79 million. In February, Ryder System’s Board declared a quarterly cash dividend of $0.41 per share, which yields 2.55% annually. Alexander Mitchell’s Scopus Asset Management acquired a new stake of 656,900 shares of Ryder System Inc. (NYSE:R) during the first quarter.

#3. Avis Budget Group Inc. (NASDAQ:CAR)

– Number of investors with long positions as of March 31: 25

– Aggregate value of investors’ holdings as of March 31: $1.13 Billion

Avis Budget Group Inc. (NASDAQ:CAR) fell out of favor with the hedge funds followed by our team during the first three months of 2016, as the number of funds with stakes in the company fell to 25 from 33 quarter-over-quarter. Similarly, the overall value of those stakes plunged by 44% sequentially to $1.13 billion, partially due to a 25% drop in the value of Avis Budget shares. Approximately 43% of the company’s outstanding common stock was stockpiled by the hedge funds included in our database. The vehicle rental operator in North America, Europe, Australia, New Zealand and other locations has seen its shares spike 27% in the past month, mainly due to signs that pricing pressure that previously put significant weight on the rental-car company’s bottom line has been fading away. Even so, the stock is down 12% year-to-date due investor worries over an oversupply of vehicles in the industry that could put pressure on prices and earnings. Larry Robbins’ Glenview Capital was the owner of 8.30 million shares of Avis Budget Group Inc. (NASDAQ:CAR) at the end of March.