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.

GM, Tesla, Ford: Hedge Funds’ Favorite Auto Manufacturers

The automobile industry has been facing headwinds since the start of the year, as the sector seems to have plateaued after surging to record sales of 17.4 million units in 2015. In the first seven months of 2016, U.S. auto sales totaled 4.253 million units, a decline of 7.7% compared to the same period of last year.

In this article, we’ll take a look at the top automobile stocks liked by the smart money investors in our database to see how they’re positioning themselves in auto stocks amid the sales declines.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

Tesla Motors Inc (NASDAQ:TSLA), Electric Car, rimac, concept, track, automotive, elegant, brand, design,

Igor Karasi /

Thor Industries, Inc. (NYSE:THO)

– Number of Hedge Funds With Long Positions (as of June 30): 23

– Aggregate Value of Hedge Funds’ Holdings (as of June 30): $213.71 million

23 hedge funds in Insider Monkey’s database held $213.71 million worth of stakes in Thor Industries, Inc. (NYSE:THO) at the end of the June quarter. The Indiana-based company’s stock has gained over 45% so far this year, making it one of the best performing stocks in the sector. In August, Wunderlich Securities downgraded Thor Industries Inc. (NYSE:THO) to ‘Hold’ from ‘Buy’ given the stock’s appreciation, but reiterated its $80 price target on it. Chuck Royce’s Royce & Associates owned 1.62 million shares of the RV manufacturer on June 30.

Follow Thor Industries Inc (NYSE:THO)
Trade (NYSE:THO) Now!

Fiat Chrysler Automobiles NV (NYSE:FCAU)

– Number of Hedge Funds With Long Positions (as of June 30): 27

– Aggregate Value of Hedge Funds’ Holdings (as of June 30): $534.79 million

27 funds in our system owned $534.79 million worth of Fiat Chrysler Automobiles NV (NYSE:FCAU)’s stock on June 30, down from 28 funds with $645.66 million in positions on March 31. Fiat Chrysler Automobiles NV (NYSE:FCAU) posted a 3% rise in sales for the month of August, mainly due to the strength of its Jeep brand and fleet sales, which accounted for 24% of its total sales during the month. The SUV brand’s sales rose by 12%, with Cherokee sales up by 41% compared to last August. In contrast to Jeep’s success, Chrysler brand sales decreased by 22%. Fiat Chrysler’s stock has lost over 26% so far this year.

Follow Apple Inc. (NASDAQ:AAPL)
Trade (NASDAQ:AAPL) Now!

On the next page we’ll take a look at the three auto manufacturers that are the most beloved of hedge funds.

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.