Oh wouldn’t any business love to be Hertz Global Holdings, Inc. (NYSE:HTZ)? With the winds of post-acquisition synergies at its back after buying Dollar Thrifty, shares of the car rental giant are up over 50% in 2013. It’d make sense that hedge funds are at least responsible for some of this appreciation. So who, specifically, has been buying?
In today’s marketplace, there are plenty of metrics shareholders can use to analyze publicly traded companies. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outperform the broader indices by a very impressive amount (see just how much).
Equally as necessary, positive insider trading sentiment is a second way to analyze the investments you’re interested in. As the old adage goes: there are many reasons for an insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if investors understand where to look (learn more here).
Furthermore, it’s important to analyze the recent info for Hertz Global Holdings, Inc. (NYSE:HTZ).
Hedge fund activity in Hertz Global Holdings, Inc. (NYSE:HTZ)
At Q2’s end, a total of 84 of the hedge funds we track were long in this stock, a change of 24% from the previous quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their holdings substantially.
When using filings from the hedgies we track, Stephen Mandel’s Lone Pine Capital had the largest position in Hertz Global Holdings, Inc. (NYSE:HTZ), worth close to $429.8 million, accounting for 2.1% of its total 13F portfolio. Coming in second is James Dinan of York Capital Management, with a $305.4 million position; 6.4% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Donald Chiboucis’s Columbus Circle Investors, Jeffrey Tannenbaum’s Fir Tree and John Griffin’s Blue Ridge Capital.
As industrywide interest increased, specific money managers were breaking ground themselves. Lone Pine Capital, managed by Stephen Mandel, assembled the biggest position in Hertz Global Holdings, Inc. (NYSE:HTZ). Lone Pine Capital had 429.8 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also made a $305.4 million investment in the stock during the quarter. The following funds were also among the new HTZ investors: Daniel S. Och’s OZ Management, Donald Chiboucis’s Columbus Circle Investors, and Jeffrey Tannenbaum’s Fir Tree.
Insider trading activity in Hertz Global Holdings, Inc. (NYSE:HTZ)
Insider buying is particularly usable when the company in question has seen transactions within the past half-year. Over the last half-year time frame, Hertz Global Holdings, Inc. (NYSE:HTZ) has experienced 1 unique insiders buying, and 13 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators 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 belong to the rental & leasing services industry and their market caps match HTZ’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Avis Budget Group Inc. (NASDAQ:CAR) | 41 | 0 | 8 |
| Ryder System, Inc. (NYSE:R) | 25 | 0 | 7 |
| AMERCO (NASDAQ:UHAL) | 19 | 1 | 0 |
| United Rentals, Inc. (NYSE:URI) | 48 | 0 | 12 |
| SBA Communications Corporation (NASDAQ:SBAC) | 33 | 0 | 4 |
Using the results explained by the previously mentioned studies, regular investors should always pay attention to hedge fund and insider trading sentiment, and Hertz Global Holdings, Inc. (NYSE:HTZ) shareholders fit into this picture quite nicely.
