Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Navistar International Corp (NYSE:NAV) based on that data.
Navistar International Corp (NYSE:NAV) was in 25 hedge funds’ portfolios at the end of the third quarter of 2015. NAV investors should pay attention to an increase in hedge fund interest recently. There were 16 hedge funds in our database with NAV positions at the end of the previous quarter. At the end of this article we will also compare NAV to other stocks, including Sonic Automotive Inc (NYSE:SAH), Ruckus Wireless Inc (NYSE:RKUS), and Shenandoah Telecommunications Company (NASDAQ:SHEN) to get a better sense of its popularity.
Follow Navistar International Corp (NYSE:NAV)
Follow Navistar International Corp (NYSE:NAV)
To the average investor, there are several gauges investors use to appraise stocks. A couple of the most underrated gauges are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the top hedge fund managers can outclass the broader indices by a healthy amount (see the details here).
Keeping this in mind, we’re going to take a glance at the latest action encompassing Navistar International Corp (NYSE:NAV).
Hedge fund activity in Navistar International Corp (NYSE:NAV)
At Q3’s end, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a surge of 56% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Icahn Capital LP, managed by notorious activist Carl Icahn, holds the biggest position in Navistar International Corp (NYSE:NAV). The fund reportedly holds a $207 million stake in the company, comprising 0.7% of its 13F portfolio. Coming in second is Mark Rachesky of MHR Fund Management, with a $206.4 million position; 9.7% of its 13F portfolio is allocated to the company. Other members of the smart money with similar optimism consist of Mario Gabelli’s GAMCO Investors, and Kevin Michael Ulrich and Anthony Davis’s Anchorage Advisors.
Consequently, key money managers have jumped into Navistar International Corp (NYSE:NAV) headfirst. Lodge Hill Capital, managed by Clint Murray, assembled the biggest call position in Navistar International Corp (NYSE:NAV). The fund had $8.9 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $2.6 million investment in the stock during the quarter. The other funds with brand new NAV positions are Philip Rosenstrach’s Pomelo Capital, David Keidan’s Buckingham Capital Management, and Glenn Russell Dubin’s Highbridge Capital Management.
Let’s now review hedge fund activity in other stocks similar to Navistar International Corp (NYSE:NAV). We will take a look at Sonic Automotive Inc (NYSE:SAH), Ruckus Wireless Inc (NYSE:RKUS), Shenandoah Telecommunications Company (NASDAQ:SHEN), and Celldex Therapeutics, Inc. (NASDAQ:CLDX). This group of stocks’ market valuations resemble NAV’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SAH | 20 | 101810 | -1 |
| RKUS | 19 | 127505 | 0 |
| SHEN | 16 | 47462 | 4 |
| CLDX | 14 | 52238 | -5 |
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. In NAV’s case that figure is significantly higher than the average: $534 million at the end of the quarter. Sonic Automotive Inc (NYSE:SAH) is the most popular stock in this table. On the other hand Celldex Therapeutics, Inc. (NASDAQ:CLDX) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Navistar International Corp (NYSE:NAV) is more popular among hedge funds. It is also important to note that activist investors Carl Icahn and Mark Rachesky are among the largest shareholders of Navistar, which is a positive sign. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
