Air Lease Corp (NYSE:AL) shareholders have witnessed an increase in activity from the world’s largest hedge funds of late.
According to most investors, hedge funds are viewed as unimportant, outdated investment vehicles of yesteryear. While there are more than 8000 funds with their doors open at present, we at Insider Monkey choose to focus on the top tier of this group, around 450 funds. It is estimated that this group controls the majority of the hedge fund industry’s total capital, and by paying attention to their highest performing investments, we have determined a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).
Just as integral, optimistic insider trading sentiment is a second way to break down the world of equities. There are a number of motivations for an executive to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this method if “monkeys” understand what to do (learn more here).
With all of this in mind, it’s important to take a look at the latest action regarding Air Lease Corp (NYSE:AL).
What does the smart money think about Air Lease Corp (NYSE:AL)?
Heading into 2013, a total of 15 of the hedge funds we track were bullish in this stock, a change of 50% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.
Of the funds we track, Invesco Private Capital (WL Ross), managed by Wilbur Ross, holds the most valuable position in Air Lease Corp (NYSE:AL). Invesco Private Capital (WL Ross) has a $91.4 million position in the stock, comprising 8.5% of its 13F portfolio. Sitting at the No. 2 spot is John Osterweis of Osterweis Capital Management, with a $70.8 million position; 3.1% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Chuck Royce’s Royce & Associates, Murray Stahl’s Horizon Asset Management and Joe DiMenna’s ZWEIG DIMENNA PARTNERS.
Consequently, some big names were leading the bulls’ herd. ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, initiated the most valuable position in Air Lease Corp (NYSE:AL). ZWEIG DIMENNA PARTNERS had 14.5 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $0.5 million position during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, Richard Driehaus’s Driehaus Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
How are insiders trading Air Lease Corp (NYSE:AL)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past half-year. Over the latest half-year time frame, Air Lease Corp (NYSE:AL) has experienced 1 unique insiders buying, and 1 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 Air Lease Corp (NYSE:AL). These stocks are GATX Corporation (NYSE:GMT), AMERCO (NASDAQ:UHAL), Ryder System, Inc. (NYSE:R), and Avis Budget Group Inc. (NASDAQ:CAR). This group of stocks are in the rental & leasing services industry and their market caps are similar to AL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| GATX Corporation (NYSE:GMT) | 12 | 2 | 6 |
| AMERCO (NASDAQ:UHAL) | 7 | 0 | 1 |
| Ryder System, Inc. (NYSE:R) | 14 | 0 | 8 |
| Avis Budget Group Inc. (NASDAQ:CAR) | 21 | 0 | 9 |
With the returns shown by our strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Air Lease Corp (NYSE:AL) is an important part of this process.
