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Is Genesee & Wyoming Inc (GWR) A Good Stock To Buy?

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The equity market returns were very disappointing in the third quarter, “thanks” to the slowdown of China’s economy and the weaker-than-expected U.S. economic data. It was not entirely clear whether the broader market sell-off made U.S. equity valuations undervalued, but it definitely made them more attractive. It is worth mentioning that Russell 2000 ETF (IWM) underperformed the broad-market S&P 500 ETF by more than 14 percentage points during the period of June 25, 2015 through October 30, 2015. This clearly points to the fact that most investors, including hedge fund firms and institutional investors, heavily cut their exposure to high-potential (but seemingly riskier) small-cap stocks during the bloody third quarter. So let’s take a glance at the smart money sentiment towards Genesee & Wyoming Inc (NYSE:GWR) and see how it was affected.

Genesee & Wyoming Inc (NYSE:GWR) shareholders have witnessed a decrease in hedge fund sentiment recently. GWR was in 20 hedge funds’ portfolios at the end of September. There were 22 hedge funds in our database with GWR holdings at the end of the previous quarter. At the end of this article we will also compare GWR to other stocks, including SLM Corp (NASDAQ:SLM), Equity One, Inc. (NYSE:EQY), and Western Alliance Bancorporation (NYSE:WAL) to get a better sense of its popularity.

Follow Genesee & Wyoming Inc (NYSE:GWR)
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At the moment there are dozens of metrics stock traders put to use to assess publicly traded companies. Some of the most useful metrics are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the top money managers can outperform the broader indices by a very impressive amount (see the details here).

With all of this in mind, let’s take a glance at the key action encompassing Genesee & Wyoming Inc (NYSE:GWR).

How are hedge funds trading Genesee & Wyoming Inc (NYSE:GWR)?

At the Q3’s end, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from the second quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Steve Cohen’s Point72 Asset Management has the number one position in Genesee & Wyoming Inc (NYSE:GWR), worth close to $52.5 million, corresponding to 0.4% of its total 13F portfolio. Coming in second is Goodnow Investment Group, led by Edward Goodnow, holding a $34.5 million position; the fund has 6.6% of its 13F portfolio invested in the stock. Some other peers that hold long positions contain Israel Englander’s Millennium Management, Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management and Ken Griffin’s Citadel Investment Group.

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