Is Genesee & Wyoming Inc (GWR) a Good Stock to Buy?

Page 2 of 2

Since Genesee & Wyoming Inc (NYSE:GWR) has weathered bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Jonathan Barrett and Paul Segal’s Luminus Management sold off the largest position of the “upper crust” of funds tracked by Insider Monkey, worth close to $49.1 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund sold off about $27.2 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Genesee & Wyoming Inc (NYSE:GWR). We will take a look at AGCO Corporation (NYSE:AGCO), Synovus Financial Corp. (NYSE:SNV), Tahoe Resources Inc (NYSE:TAHO), and Retail Properties of America Inc (NYSE:RPAI). This group of stocks’ market valuations resemble GWR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AGCO 26 577012 3
SNV 21 454718 -1
TAHO 20 104692 2
RPAI 14 234056 -5

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $343 million. That figure was $169 million in GWR’s case. AGCO Corporation (NYSE:AGCO) is the most popular stock in this table. On the other hand Retail Properties of America Inc (NYSE:RPAI) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Genesee & Wyoming Inc (NYSE:GWR) is even less popular than RPAI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none

Page 2 of 2