Why These Stocks Inched Down on Last Trading Day of 2015

On the last trading day of the year, the stock market is down, with all three major indices in the red, but shares of Lockheed Martin Corporation (NYSE:LMT), General Electric Company (NYSE:GE), General Motors Company (NYSE:GM) and Apple Inc. (NASDAQ:AAPL) are in the spotlight on the back of different new developments. So let’s take a look at these stocks today and see the hedge fund sentiment towards them.

At Insider Monkey, we track over 730 hedge funds and other institutional investors. By analyzing their quarterly 13F filings we determine the stocks that they are collectively bullish on, which allows us to mimic some of these picks and beat the market. Our focus is the small-cap picks of the investors we track and by imitating the 15 most popular small-cap stocks among these funds we have managed to generate returns of around 102% since August 2012, outperforming the S&P 500 ETF (SPY) by some 53 percentage points (see more details here).

The first on the list is Lockheed Martin Corporation (NYSE:LMT), whose stock was in the green in pre-market trading, but has declined since the opening bell. Earlier today, it was announced that the company has been awarded a $1 billion contract by the US Department of Defense for 32 C-130J transporter aircrafts, which are expected to be completed by April 2020. Between July and September, Lockheed Martin Corporation (NYSE:LMT) registered an increase in popularity among the funds we track, with 39 investors holding long positions versus 36 funds in the previous quarter. First Eagle Investment Management is the largest shareholder with 2.38 million shares, valued at $494.0 million at the end of September.

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Second in our list of trending stocks is General Electric Company (NYSE:GE), whose shares are in the red amid the announcement of the separation of its renewable business from the power division. The new unit will be in charge of the hydro-power and wind-power businesses that were bought from Alstom earlier this year. Among the funds we follow, 74 reported long positions in General Electric as of the end of September, up by four funds over the quarter.  Nelson Peltz‘s Trian Partners is the largest shareholder of the company among the investors we follow, with 90.6 million shares disclosed in its latest 13F filing.

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Then there is General Motors Company (NYSE:GM), whose shares are down by 0.5% today after a U.S. District Judge has rejected the company’s attempt to dismiss the trial related to defective ignition switches and due to enough evidence provided by the counterparty, the firm is going to face a civil trial in January. General Motors Company (NYSE:GM) registered a decrease in popularity among the funds we track, with 88 investors holding long positions versus 104 funds in the previous quarter, amassing around 10.8% of its outstanding stock. Warren Buffett‘s Berkshire Hathaway is one of the largest shareholders of the company, with 50.0 million shares valued at $1.5 billion as of the end of the third quarter.

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Last but not least, Apple Inc. (NASDAQ:AAPL) shares have fallen by more than 1.5% amid reports that the tech giant agreed to pay $348 million to Italy’s tax office in order to settle the dispute related to the company’s tax liabilities between 2008 and 2013. According to Reuters, the allegations stated that Apple did not pay corporate taxes on profits generated in Italy. Apple will also sign an agreement related to its future tax liabilities, the source added. According to Insider Monkey’s database, of the 730 funds we track, 133 funds reported holding shares on September 30, amassing around 2.80% of the float. Carl Icahn‘s Icahn Capital has the most valuable position in Apple, worth $5.82 billion, equal to 20.9% of its total 13F portfolio.

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Disclosure: none