Is General Motors Company (NYSE:GM) a superb investment now? Money managers are taking an optimistic view. The number of bullish hedge fund positions moved up by 3 in recent months.
To the average investor, there are dozens of indicators market participants can use to track their holdings. A couple of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outperform the S&P 500 by a superb margin (see just how much).
Just as key, optimistic insider trading activity is another way to parse down the investments you're interested in. Obviously, there are a number of reasons for an executive to drop shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if investors know where to look (learn more here).
Consequently, let's take a peek at the key action encompassing General Motors Company (NYSE:GM).
In preparation for this year, a total of 98 of the hedge funds we track held long positions in this stock, a change of 3% from one quarter earlier. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes substantially.
When looking at the hedgies we track, Warren Buffett's Berkshire Hathaway had the biggest position in General Motors Company (NYSE:GM), worth close to $721 million billion, comprising 1% of its total 13F portfolio. On Berkshire Hathaway's heels is Greenlight Capital, managed by David Einhorn, which held a $610 million position; 1.2% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Frank Brosens's Taconic Capital, and William B. Gray's Orbis Investment Management.
As one would reasonably expect, specific money managers have jumped into General Motors Company (NYSE:GM) headfirst. Samlyn Capital, managed by Robert Pohly, initiated the most valuable position in General Motors Company (NYSE:GM). Samlyn Capital had 35 million invested in the company at the end of the quarter. Anthony Bozza's Lakewood Capital Management also initiated a $35 million position during the quarter. The other funds with brand new GM positions are Rob Citrone's Discovery Capital Management, James Dinan's York Capital Management, and John Bader's Halcyon Asset Management.
Insider purchases made by high-level executives is most useful when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, General Motors Company (NYSE:GM) has seen 2 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey's studies, everyday investors should always monitor hedge fund and insider trading activity, and General Motors Company (NYSE:GM) is no exception.
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