We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Ackman’s recent Valeant losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Air Lease Corp (NYSE:AL).
Air Lease Corp (NYSE:AL) has seen a decrease in support from the world’s most elite money managers in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Brinker International, Inc. (NYSE:EAT), Virtu Financial Inc (NASDAQ:VIRT), and Piedmont Natural Gas Company, Inc. (NYSE:PNY) to gather more data points.
Today there are plenty of formulas investors use to evaluate their stock investments. A pair of the less utilized formulas are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the best picks of the best investment managers can trounce their index-focused peers by a very impressive amount (see the details here).
With all of this in mind, let’s check out the fresh action regarding Air Lease Corp (NYSE:AL).
How are hedge funds trading Air Lease Corp (NYSE:AL)?
At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a drop of 7% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Peter Adam Hochfelder’s Brahman Capital has the largest position in Air Lease Corp (NYSE:AL), worth close to $141 million, corresponding to 2.8% of its total 13F portfolio. On Brahman Capital’s heels is Osterweis Capital Management, led by John Osterweis, holding an $85 million position; 3.8% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism contain Chuck Royce’s Royce & Associates and Bernard Selz’s Selz Capital.