Genesee & Wyoming Inc (NYSE:GWR): Are Hedge Funds Right About This Stock?

Genesee & Wyoming Inc (NYSE:GWR)Is Genesee & Wyoming Inc (NYSE:GWR) a buy right now? Prominent investors are becoming more confident. The number of bullish hedge fund positions inched up by 1 lately.

To most investors, hedge funds are seen as unimportant, old financial tools of yesteryear. While there are over 8000 funds trading at present, we hone in on the bigwigs of this club, about 450 funds. It is widely believed that this group has its hands on the lion’s share of the hedge fund industry’s total capital, and by tracking their best picks, we have found a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Just as beneficial, positive insider trading sentiment is another way to parse down the investments you’re interested in. Just as you’d expect, there are lots of stimuli for an insider to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).

Now, we’re going to take a gander at the key action encompassing Genesee & Wyoming Inc (NYSE:GWR).

How have hedgies been trading Genesee & Wyoming Inc (NYSE:GWR)?

At year’s end, a total of 19 of the hedge funds we track held long positions in this stock, a change of 6% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably.

According to our comprehensive database, Oaktree Capital Management, managed by Howard Marks, holds the largest position in Genesee & Wyoming Inc (NYSE:GWR). Oaktree Capital Management has a $38 million position in the stock, comprising 0.7% of its 13F portfolio. Sitting at the No. 2 spot is Goodnow Investment Group, managed by Edward Goodnow, which held a $37 million position; 0.7% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Donald Chiboucis’s Columbus Circle Investors, Richard Driehaus’s Driehaus Capital and “Richard S. Meisenberg’s ACK Asset Management.

Consequently, key hedge funds were leading the bulls’ herd. Oaktree Capital Management, managed by Howard Marks, assembled the most outsized position in Genesee & Wyoming Inc (NYSE:GWR). Oaktree Capital Management had 38 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $8 million position during the quarter. The following funds were also among the new GWR investors: Israel Englander’s Millennium Management, Bart Baum’s Ionic Capital Management, and Cliff Asness’s AQR Capital Management.

How have insiders been trading Genesee & Wyoming Inc (NYSE:GWR)?

Insider buying is at its handiest when the company in question has seen transactions within the past half-year. Over the last 180-day time frame, Genesee & Wyoming Inc (NYSE:GWR) has experienced 2 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

With the returns shown by our research, retail investors should always pay attention to hedge fund and insider trading sentiment, and Genesee & Wyoming Inc (NYSE:GWR) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!