Gol Linhas Aereas Inteligentes SA (ADR) (GOL): Are Hedge Funds Right About This Stock?

Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) shareholders have witnessed an increase in hedge fund interest in recent months.

In the 21st century investor’s toolkit, there are plenty of methods investors can use to analyze publicly traded companies. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can outpace the S&P 500 by a significant margin (see just how much).

Just as key, bullish insider trading activity is a second way to break down the world of equities. Just as you’d expect, there are lots of motivations for an insider to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this strategy if investors understand where to look (learn more here).

Keeping this in mind, it’s important to take a look at the key action regarding Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL).

How have hedgies been trading Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL)?

At the end of the first quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 140% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes considerably.

Of the funds we track, Nick Niell’s Arrowgrass Capital Partners had the largest position in Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL), worth close to $10.7 million, accounting for 0.6% of its total 13F portfolio. On Arrowgrass Capital Partners’s heels is Orange Capital, managed by Daniel Lewis, which held a $8.4 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Other peers that are bullish include Rob Butts and Josh Clark’s Southpoint Capital Advisors, Israel Englander’s Millennium Management and Bruce J. Richards and Louis Hanover’s Marathon Asset Management.

As aggregate interest increased, specific money managers were leading the bulls’ herd. Arrowgrass Capital Partners, managed by Nick Niell, established the most valuable position in Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL). Arrowgrass Capital Partners had 10.7 million invested in the company at the end of the quarter. Daniel Lewis’s Orange Capital also made a $8.4 million investment in the stock during the quarter. The other funds with brand new GOL positions are Rob Butts and Josh Clark’s Southpoint Capital Advisors, Bruce J. Richards and Louis Hanover’s Marathon Asset Management, and Steven Cohen’s SAC Capital Advisors.

What have insiders been doing with Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL)?

Bullish insider trading is best served when the company in question has experienced transactions within the past 180 days. Over the last half-year time period, Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL). These stocks are Republic Airways Holdings Inc. (NASDAQ:RJET), Alaska Air Group, Inc. (NYSE:ALK), SkyWest, Inc. (NASDAQ:SKYW), JetBlue Airways Corporation (NASDAQ:JBLU), and Allegiant Travel Company (NASDAQ:ALGT). This group of stocks are in the regional airlines industry and their market caps resemble GOL’s market cap.