Hedge Funds Were Right As Garmin Ltd. (GRMN) Sinks On Lowered Guidance

How are hedge funds trading Garmin Ltd. (NASDAQ:GRMN)?

When looking at the hedgies followed by Insider Monkey, Joel Greenblatt‘s Gotham Asset Management had the most valuable position in Garmin Ltd. (NASDAQ:GRMN), owning 1.51 million shares worth close to $71.8 million, corresponding to 0.5% of its total 13F portfolio. The second-most bullish hedge fund manager was Select Equity Group, managed by Robert Joseph Caruso, which held a $39.8 million position in 838,402 shares; the fund had 0.4% of its 13F portfolio invested in the stock. Alternative hedgies that were bullish included Cliff Asness’ AQR Capital Management, and David Harding’s Winton Capital Management.

Since Garmin Ltd. (NASDAQ:GRMN) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there were a few fund managers that elected to cut their entire stakes in the first quarter. Intriguingly, John Armitage‘s Egerton Capital Limited said goodbye to the largest investment of the “upper crust” of funds tracked by Insider Monkey, selling 879,104 shares valued at an estimated $46.44 million. Malcolm Fairbairn’s fund, Ascend Capital, also sold off its 755,913 shares, about $39.93 million worth.

The bearish sentiment from hedge funds should be enough to discourage, or at least make potential investors think twice, about investing in this stock. The gloomy revised guidance from the firm is even more reason to not be long on Garmin Ltd. (NASDAQ:GRMN) at this time, even on the dip today.

Disclosure: None