General Dynamics Corporation (NYSE:GD) was in 48 hedge funds’ portfolio at the end of March. GD shareholders have witnessed an increase in enthusiasm from smart money in recent months. There were 39 hedge funds in our database with GD positions at the end of the previous quarter.
In the financial world, there are tons of methods shareholders can use to track their holdings. Two of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can outclass the S&P 500 by a significant amount (see just how much).
Just as key, positive insider trading activity is a second way to break down the investments you’re interested in. There are a variety of stimuli for an insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if investors understand where to look (learn more here).
Now, let’s take a gander at the latest action regarding General Dynamics Corporation (NYSE:GD).
How are hedge funds trading General Dynamics Corporation (NYSE:GD)?
At Q1’s end, a total of 48 of the hedge funds we track were bullish in this stock, a change of 23% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, James A. Star’s Longview Asset Management had the most valuable position in General Dynamics Corporation (NYSE:GD), worth close to $2.355 billion, comprising 79.2% of its total 13F portfolio. Coming in second is Highfields Capital Management, managed by Jonathon Jacobson, which held a $133.1 million call position; the fund has 1.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include D. E. Shaw’s D E Shaw, Bob Peck and Andy Raab’s FPR Partners and Ken Griffin’s Citadel Investment Group.
As aggregate interest increased, specific money managers have jumped into General Dynamics Corporation (NYSE:GD) headfirst. Highfields Capital Management, managed by Jonathon Jacobson, assembled the biggest call position in General Dynamics Corporation (NYSE:GD). Highfields Capital Management had 133.1 million invested in the company at the end of the quarter. Bob Peck and Andy Raab’s FPR Partners also made a $54.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Jim Simons’s Renaissance Technologies, and James Melcher’s Balestra.
How are insiders trading General Dynamics Corporation (NYSE:GD)?
Insider trading activity, especially when it’s bullish, is most useful when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time frame, General Dynamics Corporation (NYSE:GD) has experienced 1 unique insiders buying, and 11 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to General Dynamics Corporation (NYSE:GD). These stocks are L-3 Communications Holdings, Inc. (NYSE:LLL), TransDigm Group Incorporated (NYSE:TDG), Rockwell Collins, Inc. (NYSE:COL), The Boeing Company (NYSE:BA), and Lockheed Martin Corporation (NYSE:LMT). This group of stocks belong to the aerospace/defense products & services industry and their market caps resemble GD’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|L-3 Communications Holdings, Inc. (NYSE:LLL)||14||0||11|
|TransDigm Group Incorporated (NYSE:TDG)||39||1||5|
|Rockwell Collins, Inc. (NYSE:COL)||19||0||12|
|The Boeing Company (NYSE:BA)||56||1||7|
|Lockheed Martin Corporation (NYSE:LMT)||32||0||6|
With the results exhibited by the aforementioned research, retail investors should always watch hedge fund and insider trading sentiment, and General Dynamics Corporation (NYSE:GD) is no exception.