Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Five Rental and Leasing Companies Hedge Funds Are Bullish On

Rental and leasing companies rent various equipment and products to consumers and businesses. Items that are usually rented out include cars, aircraft engines, heavy equipment and an array of other products. Rental and leasing companies are somewhat similar to real estate investment trusts, which buy properties, collect rent checks from tenants and then pass on the rent to investors in the form of dividends. For that reason, rental and leasing stocks are usually sporting dividend yields above average relative to the broader market. As for car rental companies in particular, car-sharing services such as Uber and Lyft are bringing disruption to the transportation industry. Having this in mind, let’s have a look at five rental and leasing companies favored by the hedge funds tracked by Insider Monkey.

At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

Hertz HTZ

Tupungato /

#5. Ehi Car Services Ltd (ADR) (NYSE:EHIC)

– Number of investors with long positions as of March 31: 5

– Aggregate value of investors’ holdings as of March 31: $170.90 Million

There were five hedge funds followed by Insider Monkey with equity investments in Ehi Car Services Ltd (ADR) (NYSE:EHIC) at the end of the March quarter, down from seven recorded at the end of the December quarter. Nonetheless, the aggregate value of those investments rose by 52% year-over-year to $170.90 million even though Ehi’s American Depositary Shares dropped 1% in the first quarter. The five hedge funds invested in Ehi Car Services amassed 20% of the company’s outstanding common stock. The provider of car rentals and car services in China has seen its market value decline by 21% since the beginning of 2016. Ehi Car Services, whose car rentals are offered in 151 cites, 217 train stations and 73 airports across China, recorded net revenues of $223.94 million in 2015, which increased by an impressive 70% year-over-year versus a growth rate of 50% recorded in 2014. The company’s first-quarter net revenues grew by 55.8% year-over-year to $71.4 million. Tiger Global Management, founded by Chase Coleman, owns 8.33 million ADSs of Ehi Car Services Ltd (ADR) (NYSE:EHIC) as of March 31.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.