Embraer SA (ADR) (NYSE:ERJ) was in 8 hedge funds’ portfolio at the end of the fourth quarter of 2012. ERJ investors should be aware of a decrease in hedge fund interest recently. There were 11 hedge funds in our database with ERJ holdings at the end of the previous quarter.
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With these “truths” under our belt, it’s important to take a gander at the key action surrounding Embraer SA (ADR) (NYSE:ERJ).
What does the smart money think about Embraer SA (ADR) (NYSE:ERJ)?
At year’s end, a total of 8 of the hedge funds we track were bullish in this stock, a change of -27% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.
Of the funds we track, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in Embraer SA (ADR) (NYSE:ERJ). Fisher Asset Management has a $31.5 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Rob Citrone of Discovery Capital Management, with a $15.9 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Jim Simons’s Renaissance Technologies, David Costen Haley’s HBK Investments and Cliff Asness’s AQR Capital Management.
Judging by the fact that Embraer SA (ADR) (NYSE:ERJ) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few hedgies that elected to cut their entire stakes at the end of the year. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the biggest investment of all the hedgies we monitor, worth close to $10.3 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund dumped about $4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 3 funds at the end of the year.
What do corporate executives and insiders think about Embraer SA (ADR) (NYSE:ERJ)?
Insider purchases made by high-level executives is at its handiest when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Embraer SA (ADR) (NYSE:ERJ) has seen 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 Embraer SA (ADR) (NYSE:ERJ). These stocks are Triumph Group Inc (NYSE:TGI), Rockwell Collins, Inc. (NYSE:COL), TransDigm Group Incorporated (NYSE:TDG), L-3 Communications Holdings, Inc. (NYSE:LLL), and B/E Aerospace Inc (NASDAQ:BEAV). This group of stocks are the members of the aerospace/defense products & services industry and their market caps are closest to ERJ’s market cap.
