Should Activists Give Up On Navistar International Corp (NAV) After 12th Straight Quarterly Loss?

Why do we say hedge funds had a generally bullish opinion on Navistar International Corp (NYSE:NAV) during the second quarter? This is because there was a substantial inflow of capital into the stock in said period despite fewer hedge funds among those we track having a long position in the stock. From April through the end of June, there was a 25.58% decrease in hedge fund holdings in the stock, to $946.15 million. The number of hedge funds long in the stock also decreased by five from the previous quarter to 16. However, the stock plunged by 40.58% in the second quarter which means that those hedge funds who were long in the stock on June 30 ended the quarter with more shares of the stock. What’s more, over half of Navistar’s outstanding shares are held by these hedge funds.

Based on Insider Monkey’s data, Navistar International Corp (NYSE:NAV)’s biggest fan in the second quarter was Kevin Michael Ulrich and Anthony Davis’ Anchorage Advisors. The firm ended June with 28 million shares of Navistar, all bought within the second quarter. As mentioned, another notable bull is Icahn; his hedge fund Icahn Capital LP held 16.27 million shares of Navistar on June 30. However, on the other side of the fence is Rob Citrone’s Discovery Capital Management, which in the second quarter dumped all 3.82 million shares of the company it previously held.

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