Volkswagen Emissions Scandal Putting Pressure On Auto Stocks

At the end of June a total of 104 hedgies had investments worth $578.35 million in General Motors Company (NYSE:GM), amassing about 10.9% of the company’s common shares. While this represented an addition of one to the total number of investors, the aggregate investment fell from $674.18 million in holdings at the end of March on the heels of about a 10% depreciation in the stock during the second quarter. Legendary investor Warren Buffett‘s holding company Berkshire Hathaway is the largest stockholder of General Motors in this list of investors, owning about 41.0 million shares valued at $1.37 billion. In second place is David Tepper’s Appaloosa Management, which surged its stake by 23% during the second quarter to hold about 18.80 million shares.

Fiat Chrysler Automobiles NV (NYSE:FCAU)’s stock has slumped by more than 14% in the last five trading days and the positive karma it established by reaching a tentative deal with the United Auto Workers seems to be completely lost. The company is now trading at a favorable forward earnings multiple of 8.87 and Morgan Stanley recently resumed its coverage on the company with an ‘Overweight’ rating. Rob Citrone’s Discovery Capital Management increased its stake in Fiat Chrysler Automobiles NV (NYSE:FCAU) by about 34% during the second trimester to nearly 5.13 million shares valued at $74.47 million.

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