Billings Capital’s Bets On Industrial and Finance Stocks Pay Off With Huge Quarter

Billings Capital owned 195,875 shares of United Rentals, Inc. (NYSE:URI) on June 30, valued at $13.14 million, ranking it as the third-most valuable position in the fund’s equity portfolio. United Rentals also posted strong third-quarter returns, with gains of 17%, though the stock still trades down slightly for the year. Morgan Stanley sees little upside left in the shares, downgrading the stock to ‘Equal Weight’ from ‘Overweight’ in October.

At Q2’s end, a total of 37 of the hedge funds tracked by Insider Monkey were bullish on United Rentals, Inc. (NYSE:URI), owning 8.40% of its common shares. Hedge funds were bearish on the stock during the quarter though, as a net total of nine fewer hedge funds owned its shares on June 30 than did on March 31. Marcato Capital Management ($109.6 million position) and Stelliam Investment Management ($56 million position) held the two largest positions in United Rentals, Inc. (NYSE:URI) among those funds on June 30.

Lastly is auto-parts supplier Tenneco Inc (NYSE:TEN), in which Billings Capital owned a $10.92 million position on June 30 after cutting the size of it by 22% during the second quarter. After getting battered by the Brexit, shares of Tenneco Inc (NYSE:TEN) rebounded in a big way in the third-quarter, gaining 25%. Tenneco expects its growth to outpace the industry in each of the next two years.

When looking at the institutional investors followed by Insider Monkey, Mario Gabelli’s GAMCO Investors had the number one position in Tenneco Inc (NYSE:TEN) on June 30, worth close to $32.3 million. Ric Dillon of Diamond Hill Capital was next with a $27.1 million position. Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors were also among the 27 shareholders of the stock in our database at the end of the second quarter.

Disclosure: None