Genworth Financial Inc (GNW) Drops 13% on Earnings Miss For Second Quarter: Should It Be Bought on the Dip?

Hedge fund activity in Genworth Financial Inc (NYSE:GNW)

Among the funds tracked by Insider Monkey, Bill Miller‘s Legg Mason Capital Management held the largest position in Genworth Financial Inc (NYSE:GNW) by the end of first quarter, with around 9.2 million shares valued at $66.9 million. Richard Pzena’s Pzena Investment Management and Jim Simons‘ Renaissance Technologies held the second and third largest stakes with 6.5 million and 4.7 million shares respectively. Pzena has increased his holding in the company by 93% during the first quarter, whereas Simons upped his position by 55%. Zac Hirzel’s Hirzel Capital Management opened a new position in the stock by acquiring around 3.4 million shares during the first trimester.

On the other hand, a number of investors significantly reduced their positions in Genworth during the January – March period. Among them are Ken Griffin’s Citadel Investment Group and David Shaw’s D.E. Shaw & Co., which unloaded some 936,800 shares and 784,900 shares respectively. Citadel and D.E. Shaw owned some 1.10 million shares and 1.67 million shares respectively, according to their latest 13F filings.

As the stock drops in value, can we see this as an opportunity to get into the stock? Considering the bearish hedge fund sentiment coupled with second quarter earnings miss, we don’t recommend to buy this stock at the moment.

Disclosure: None