The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL).
Is Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) a healthy stock for your portfolio? Money managers are surely becoming more confident. The number of long hedge fund investments increased by 2 in recent months. GOL was in 6 hedge funds’ portfolios at the end of September. There were 4 hedge funds in our database with GOL holdings at the end of June. 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 Wynn Resorts, Limited (NASDAQ:WYNN), Cheniere Energy Partners LP (NYSEAMEX:CQP), and Iron Mountain Incorporated (NYSE:IRM) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
How have hedgies been trading Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL)?
Heading into the fourth quarter of 2016, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 50% surge from the previous quarter, pushing hedge fund ownership to a yearly high. Below, you can check out the change in hedge fund sentiment towards GOL over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Jon Bauer’s Contrarian Capital has the most valuable position in Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL), worth close to $11 million, amounting to 5.2% of its total 13F portfolio. On Contrarian Capital’s heels is Renaissance Technologies, one of the largest hedge funds in the world, which holds a $6.2 million position. Remaining professional money managers that are bullish contain Himanshu H. Shah’s Shah Capital Management, Andy Redleaf’s Whitebox Advisors, and Israel Englander’s Millennium Management. We should note that two of these hedge funds (Shah Capital Management and Whitebox Advisors) are among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.