U.S stocks have failed to hold on to gains this morning, as slumping oil prices continue to put pressure on the markets. There are several stocks that have managed to stay in green territory despite the gloom. Let’s find out why investors have pushed General Motors Company (NYSE:GM), Atmel Corporation (NASDAQ:ATML), FireEye Inc (NASDAQ:FEYE) and Magna International Inc. (USA) (NYSE:MGA) higher today and see how the best investors in the world have been trading these stocks lately.
We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received (see the details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.
General Motors Company (NYSE:GM) shareholders have received a boost today, with the company announcing an increase to its share buyback program and having raised its quarterly dividend. The stock opened roughly 5% higher this morning after news emerged that the iconic car maker has decided to increase its buyback program by $4 billion and to raise its quarterly dividend payments by 6% to $0.38 per share. GM’s management sees the business improving in 2016 and has adjusted their forward guidance to reflect that optimism. GM now expects 2016 full year profit to range between $5.25 and $5.75 per share, up from the previous projections of $5.00-to-$5.50 per share.
Hedge funds were looking to distance themselves from General Motors Company (NYSE:GM) during the third-quarter of 2015, with the number of long positions dropping to 88, well down from 104 a quarter earlier. The legendary Warren Buffett is betting even bigger on General Motors Company (NYSE:GM) however, with Berkshire Hathaway holding some 50.0 million GM shares on September 30, up by 22% during the third quarter.
An unsolicited offer from Microchip Technology Inc. (NASDAQ:MCHP) has sent Atmel Corporation (NASDAQ:ATML) higher this morning, with the management of Atmel stating its intent to terminate its previously-agreed upon merger with Dialog Semiconductor. Microchip is offering $8.15 per share, which includes $7.00 in cash and a fraction of its own shares. In September 2015, Atmel agreed to a merger with Dialog Semiconductor in a deal that valued Atmel at $4.6 billion, with Dialog offering $4.65 in cash and 0.112 American Depository Shares of Dialog for each Atmel share. Since then, Dialog Semiconductor shares have lost nearly 40% of their value and the management of Atmel sees the offer from Microchip as being superior to that of Dialog. Should the company decide to terminate the Dialog merger, it will have to pay a $137.3 million termination fee.
At the end of September 2015, roughly 8% of Atmel Corporation (NASDAQ:ATML)’s common stock was held by 35 elite hedge funds in our database, down from 36 at the end of June. The largest stake in Atmel among the funds we track was held by TIG Advisors, run by Carl Tiedemann and Michael Tiedemann. In its latest 13F filing, the fund reported ownership of a little over 10.0 million shares, up by roughly 450% during the third quarter.
Head to the next page to find out the latest on FireEye and Magna International.