Hertz Global Holdings, Inc. (HTZ): Are Hedge Funds Right About This Stock?

Hertz Global Holdings, Inc. (NYSE:HTZ) has experienced an increase in enthusiasm from smart money of late.

In the 21st century investor’s toolkit, there are dozens of metrics investors can use to analyze stocks. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outclass the market by a very impressive margin (see just how much).

Equally as integral, bullish insider trading activity is another way to break down the financial markets. There are a variety of stimuli for an executive to sell shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).

With these “truths” under our belt, it’s important to take a look at the recent action surrounding Hertz Global Holdings, Inc. (NYSE:HTZ).

What does the smart money think about Hertz Global Holdings, Inc. (NYSE:HTZ)?

At the end of the first quarter, a total of 68 of the hedge funds we track held long positions in this stock, a change of 19% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes meaningfully.

When looking at the hedgies we track, James Dinan’s York Capital Management had the biggest position in Hertz Global Holdings, Inc. (NYSE:HTZ), worth close to $242.6 million, comprising 5.3% of its total 13F portfolio. On York Capital Management’s heels is Glenn Russell Dubin of Highbridge Capital Management, with a $200.2 million position; 2.3% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Donald Chiboucis’s Columbus Circle Investors, Rob Citrone’s Discovery Capital Management and Jeffrey Tannenbaum’s Fir Tree.

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Capital Growth Management, managed by Ken Heebner, established the most outsized position in Hertz Global Holdings, Inc. (NYSE:HTZ). Capital Growth Management had 108.4 million invested in the company at the end of the quarter. Kevin D. Eng’s Columbus Hill Capital Management also made a $46.5 million investment in the stock during the quarter. The other funds with brand new HTZ positions are Christopher Medlock James’s Partner Fund Management, Robert B. Gillam’s McKinley Capital Management, and Larry Foley and Paul Farrell’s Bronson Point Partners.

Insider trading activity in Hertz Global Holdings, Inc. (NYSE:HTZ)

Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest six-month time frame, Hertz Global Holdings, Inc. (NYSE:HTZ) has seen 1 unique insiders buying, and 18 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Hertz Global Holdings, Inc. (NYSE:HTZ). These stocks are Avis Budget Group Inc. (NASDAQ:CAR), Ryder System, Inc. (NYSE:R), AMERCO (NASDAQ:UHAL), United Rentals, Inc. (NYSE:URI), and SBA Communications Corporation (NASDAQ:SBAC). This group of stocks are the members of the rental & leasing services industry and their market caps match HTZ’s market cap.