Is Hertz Global Holdings, Inc. (NYSE:HTZ) the right pick for your portfolio? Prominent investors are becoming hopeful. The number of long hedge fund bets improved by 8 in recent months.
At the moment, there are dozens of gauges market participants can use to track stocks. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the market by a superb margin (see just how much).
Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the world of equities. As the old adage goes: there are lots of motivations for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this tactic if "monkeys" understand what to do (learn more here).
Consequently, let's take a look at the recent action surrounding Hertz Global Holdings, Inc. (NYSE:HTZ).
Heading into 2013, a total of 50 of the hedge funds we track were bullish in this stock, a change of 19% from the previous quarter. With hedgies' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.
When looking at the hedgies we track, Highbridge Capital Management, managed by Glenn Russell Dubin, holds the most valuable position in Hertz Global Holdings, Inc. (NYSE:HTZ). Highbridge Capital Management has a $229 million billion position in the stock, comprising 3.6% of its 13F portfolio. Coming in second is York Capital Management, managed by James Dinan, which held a $182 million position; 3.6% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Rob Citrone's Discovery Capital Management, Jeffrey Altman's Owl Creek Asset Management and Donald Chiboucis's Columbus Circle Investors.
As industrywide interest jumped, key hedge funds were breaking ground themselves. Highbridge Capital Management, managed by Glenn Russell Dubin, created 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 other funds with brand new HTZ positions are Jeffrey Altman's Owl Creek Asset Management, Donald Chiboucis's Columbus Circle Investors, and Doug Silverman's Senator Investment Group.
Insider purchases made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past half-year. Over the latest six-month 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 demonstrated by Insider Monkey's strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Hertz Global Holdings, Inc. (NYSE:HTZ) is no exception.
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.