Hertz Global Holdings, Inc. (NYSE:HTZ) has seen an increase in hedge fund sentiment of late.
At the moment, there are many metrics investors can use to watch stocks. A pair of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can beat their index-focused peers by a very impressive margin (see just how much).
Just as important, bullish insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are a variety of incentives for an insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this method if investors understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a look at the recent action regarding Hertz Global Holdings, Inc. (NYSE:HTZ).
How are hedge funds trading Hertz Global Holdings, Inc. (NYSE:HTZ)?
In preparation for this year, a total of 50 of the hedge funds we track were bullish in this stock, a change of 19% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Glenn Russell Dubin’s Highbridge Capital Management had the most valuable position in Hertz Global Holdings, Inc. (NYSE:HTZ), worth close to $229 million, accounting for 3.6% of its total 13F portfolio. The second largest stake is held by James Dinan of York Capital Management, with a $182 million position; 3.6% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Rob Citrone’s Discovery Capital Management, Jeffrey Altman’s Owl Creek Asset Management and Donald Chiboucis’s Columbus Circle Investors.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the largest position in Hertz Global Holdings, Inc. (NYSE:HTZ). Highbridge Capital Management had 229 million invested in the company at the end of the quarter. Rob Citrone’s Discovery Capital Management also made a $122 million investment in the stock during the quarter. The following funds were also among the new HTZ investors: Jeffrey Altman’s Owl Creek Asset Management, Donald Chiboucis’s Columbus Circle Investors, and Doug Silverman’s Senator Investment Group.
What have insiders been doing with Hertz Global Holdings, Inc. (NYSE:HTZ)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Hertz Global Holdings, Inc. (NYSE:HTZ) has experienced zero unique insiders buying, and 15 insider sales (see the details of insider trades here).
With the returns exhibited by the aforementioned time-tested strategies, retail investors should always watch hedge fund and insider trading sentiment, and Hertz Global Holdings, Inc. (NYSE:HTZ) shareholders fit into this picture quite nicely.
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