AerCap Holdings N.V. (NYSE:AER) has experienced a decrease in hedge fund interest in recent months.
According to most market participants, hedge funds are perceived as underperforming, outdated investment vehicles of years past. While there are more than 8000 funds with their doors open today, we hone in on the top tier of this club, about 450 funds. Most estimates calculate that this group oversees most of all hedge funds’ total asset base, and by keeping an eye on their top stock picks, we have discovered a few investment strategies that have historically beaten Mr. 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 began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Just as integral, bullish insider trading activity is another way to break down the world of equities. There are many reasons for an upper level exec to get rid of 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 piggybackers know what to do (learn more here).
With these “truths” under our belt, let’s take a look at the latest action encompassing AerCap Holdings N.V. (NYSE:AER).
What does the smart money think about AerCap Holdings N.V. (NYSE:AER)?
In preparation for this year, a total of 16 of the hedge funds we track held long positions in this stock, a change of -6% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially.
When looking at the hedgies we track, Blue Harbour Group, managed by Clifton S. Robbins, holds the largest position in AerCap Holdings N.V. (NYSE:AER). Blue Harbour Group has a $41 million position in the stock, comprising 4.6% of its 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $22 million position; the fund has 0% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Anand Parekh’s Alyeska Investment Group, D. E. Shaw’s D E Shaw and Charles Davidson’s Wexford Capital.
Judging by the fact that AerCap Holdings N.V. (NYSE:AER) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few hedge funds who sold off their entire stakes last quarter. Interestingly, James Dondero’s Highland Capital Management sold off the largest stake of the “upper crust” of funds we key on, worth an estimated $5 million in stock.. Louis Bacon’s fund, Moore Global Investments, also cut its call options., about $3 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds last quarter.
Insider trading activity in AerCap Holdings N.V. (NYSE:AER)
Bullish insider trading is at its handiest when the company in question has seen transactions within the past 180 days. Over the latest 180-day time frame, AerCap Holdings N.V. (NYSE:AER) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
With the results exhibited by our time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and AerCap Holdings N.V. (NYSE:AER) is no exception.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.
