What do Hedge Funds Think of Federal-Mogul Corporation (FDML)?

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Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Federal-Mogul Corporation (NASDAQ:FDML).

Federal-Mogul Corporation (NASDAQ:FDML) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 14 hedge funds’ portfolios at the end of the third quarter of 2015. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Seres Therapeutics Inc (NASDAQ:MCRB), NuStar GP Holdings, LLC (NYSE:NSH), and SPS Commerce, Inc. (NASDAQ:SPSC) to gather more data points.

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Now, let’s take a look at the fresh action surrounding Federal-Mogul Corporation (NASDAQ:FDML).

How are hedge funds trading Federal-Mogul Corporation (NASDAQ:FDML)?

According to Insider Monkey’s hedge fund database, Carl Icahn’s Icahn Capital LP has the largest position in Federal-Mogul Corporation (NASDAQ:FDML), worth close to $946.6 million, accounting for 3.4% of its total 13F portfolio. On Icahn Capital LP’s heels is GAMCO Investors, managed by Mario Gabelli, which holds an $53.4 million position; 0.4% of its 13F portfolio is allocated to the company. Some other members of the smart money with similar optimism include Murray Stahl’s Horizon Asset Management, Ken Griffin’s Citadel Investment Group and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

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