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What Hedge Funds Think About General Motors Company (GM)

Indeed, worries and concerns about the health of the world’s second-largest economy put some pressure on GM’s stock performance, but the company did manage to increase its market share in China during 2015. General Motors Company (NYSE:GM) sold 3.73 million vehicles in the country during 2015, thus grasping a market share of 14.9%, up from 3.54 million vehicles sold during 2014, when GM amassed a market share of 14.7%. According to fresh data, U.S. auto sales rose at a seasonally-adjusted rate of more than 17.5 million units in February, which marked a 16-year record for this month. Nonetheless, the biggest auto manufacturer in the United States, General Motors, sold only 227,000 new vehicles during the second month of 2015, which denoted a drop of 1.5% year-on-year. Trapeze Asset Management turned out to be right about Volkswagen’s recent scandal, as Volkswagen’s sales fell by 13%  year-on-year in February as the company is trying to get over its emissions scandal. Therefore, one can expect that GM is denifitely better off with Volkswagen struggling on the Chinese market. The shares of GM are down by 11% since the beginning of 2016 and are currently trading 5.26-times expected fiscal 2017 earnings, below the average forward P/E multiple of 7.00 for automobile manufacturers.

Now, we’re going to take a look at the new action encompassing

Hedge fund activity in General Motors Company (NYSE:GM)

Heading into 2016, a total of 84 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 5% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Warren Buffett’s Berkshire Hathaway has the most valuable position in General Motors Company (NYSE:GM), worth close to $1.70 billion, corresponding to 1.3% of its total 13F portfolio. The second largest stake is held by Greenlight Capital, managed by David Einhorn, which holds a $473.5 million position; the fund has 8.7% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism consist of David Tepper’s Appaloosa Management LP, Cliff Asness’s AQR Capital Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

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