The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL).
Is Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) a healthy stock for your portfolio? Money managers are surely becoming more confident. The number of long hedge fund investments increased by 2 in recent months. GOL was in 6 hedge funds’ portfolios at the end of September. There were 4 hedge funds in our database with GOL holdings at the end of June. 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 Wynn Resorts, Limited (NASDAQ:WYNN), Cheniere Energy Partners LP (NYSEAMEX:CQP), and Iron Mountain Incorporated (NYSE:IRM) to gather more data points.
Follow Gol Linhas Aereas Intlg S A (NYSE:GOL)
Follow Gol Linhas Aereas Intlg S A (NYSE:GOL)
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How have hedgies been trading Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL)?
Heading into the fourth quarter of 2016, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 50% surge from the previous quarter, pushing hedge fund ownership to a yearly high. Below, you can check out the change in hedge fund sentiment towards GOL over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Jon Bauer’s Contrarian Capital has the most valuable position in Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL), worth close to $11 million, amounting to 5.2% of its total 13F portfolio. On Contrarian Capital’s heels is Renaissance Technologies, one of the largest hedge funds in the world, which holds a $6.2 million position. Remaining professional money managers that are bullish contain Himanshu H. Shah’s Shah Capital Management, Andy Redleaf’s Whitebox Advisors, and Israel Englander’s Millennium Management. We should note that two of these hedge funds (Shah Capital Management and Whitebox Advisors) are among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.
As one would reasonably expect, some big names were breaking ground themselves. Millennium Management initiated the most outsized position in Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL). Millennium Management had $0.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.2 million position during the quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) but similarly valued. We will take a look at Wynn Resorts, Limited (NASDAQ:WYNN), Cheniere Energy Partners LP (NYSEAMEX:CQP), Iron Mountain Incorporated (NYSE:IRM), and CNH Industrial NV (NYSE:CNHI). This group of stocks’ market values are closest to GOL’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WYNN | 38 | 2245380 | 8 |
| CQP | 5 | 33390 | -1 |
| IRM | 16 | 103053 | 0 |
| CNHI | 15 | 406927 | -1 |
As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $697 million. That figure was $24 million in GOL’s case. Wynn Resorts, Limited (NASDAQ:WYNN) is the most popular stock in this table. On the other hand Cheniere Energy Partners LP (NYSEAMEX:CQP) is the least popular one with only 5 bullish hedge fund positions. Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WYNN might be a better candidate to consider taking a long position in.
Disclosure: None
