Hedge Funds Are Betting On Greenbrier Companies Inc (GBX): Trinity Industries, Inc. (TRN), Guangshen Railway Co. Ltd (ADR) (GSH)

Greenbrier Companies Inc (NYSE:GBX) was in 13 hedge funds’ portfolio at the end of the fourth quarter of 2012. GBX has seen an increase in support from the world’s most elite money managers lately. There were 11 hedge funds in our database with GBX positions at the end of the previous quarter.

To the average investor, there are dozens of indicators shareholders can use to analyze the equity markets. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can outclass their index-focused peers by a superb margin (see just how much).

Just as important, optimistic insider trading activity is a second way to parse down the world of equities. Just as you’d expect, there are a variety of stimuli for an executive to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).

Now, let’s take a gander at the latest action regarding Greenbrier Companies Inc (NYSE:GBX).

Hedge fund activity in Greenbrier Companies Inc (NYSE:GBX)

Heading into 2013, a total of 13 of the hedge funds we track were bullish in this stock, a change of 18% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings substantially.

According to our comprehensive database, Paul Reeder and Edward Shapiro’s PAR Capital Management had the largest position in Greenbrier Companies Inc (NYSE:GBX), worth close to $27 million, comprising 1.2% of its total 13F portfolio. On PAR Capital Management’s heels is Charles Davidson of Wexford Capital, with a $12 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Alexander Mitchell’s Scopus Asset Management, and Mario Gabelli’s GAMCO Investors.

Now, key money managers have been driving this bullishness. Scopus Asset Management, managed by Alexander Mitchell, assembled the most outsized position in Greenbrier Companies Inc (NYSE:GBX). Scopus Asset Management had 5 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $2 million investment in the stock during the quarter. The other funds with brand new GBX positions are Philip Hempleman’s Ardsley Partners, Steven Cohen’s SAC Capital Advisors, and Sander Gerber’s Hudson Bay Capital Management.

What have insiders been doing with Greenbrier Companies Inc (NYSE:GBX)?

Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time period, Greenbrier Companies Inc (NYSE:GBX) has seen zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Greenbrier Companies Inc (NYSE:GBX). These stocks are Trinity Industries, Inc. (NYSE:TRN), Guangshen Railway Co. Ltd (ADR) (NYSE:GSH), Pacer International, Inc. (NASDAQ:PACR), FreightCar America, Inc. (NASDAQ:RAIL), and American Railcar Industries, Inc. (NASDAQ:ARII). This group of stocks are in the railroads industry and their market caps resemble GBX’s market cap.

With the results exhibited by our studies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Greenbrier Companies Inc (NYSE:GBX) shareholders fit into this picture quite nicely.

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