Is AerCap Holdings N.V. (AER) A Good Stock To Buy?

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Due to the fact that AerCap Holdings N.V. (NYSE:AER) has witnessed a decline in interest from the smart money, we can see that there lies a certain “tier” of hedgies that elected to cut their full holdings last quarter. Intriguingly, Rob Citrone’s Discovery Capital Management dumped the largest investment of all the hedgies monitored by Insider Monkey, valued at an estimated $89.9 million in stock. Scott McLellan’s fund, Marble Arch Investments, also dropped its entire position, about $50.4 million worth of stock. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to AerCap Holdings N.V. (NYSE:AER). We will take a look at American Capital Agency Corp. (NASDAQ:AGNC), Vipshop Holdings Ltd – ADR (NYSE:VIPS), E TRADE Financial Corporation (NASDAQ:ETFC), and Diamondback Energy Inc (NASDAQ:FANG). This group of stocks’ market caps match AER’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AGNC 11 154784 -8
VIPS 38 935685 13
ETFC 34 1081614 -1
FANG 35 729727 1

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $725 million. That figure was an impressive $1.38 billion in AER’s case. Vipshop Holdings Ltd – ADR (NYSE:VIPS) is the most popular stock in this table. On the other hand American Capital Agency Corp. (NASDAQ:AGNC) is the least popular one with only 11 bullish hedge fund positions. AerCap Holdings N.V. (NYSE:AER) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VIPS might be a better candidate to consider a long position.

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