Is Delphi Automotive PLC (DLPH) Going to Burn These Hedge Funds?

Delphi Automotive PLC (NYSE:DLPH) is a popular pick of any investor playing a continued recovery in the auto market, and a broader period of economic success. It’s worth asking, though, is it the auto parts supplier or the automaker that’s a better investment? Some investors appear to be taking profits with Delphi.

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Now that that’s out of the way, let’s examine the newest info for Delphi Automotive PLC (NYSE:DLPH).

What have hedge funds been doing with Delphi Automotive PLC (NYSE:DLPH)?

Heading into Q3, a total of 43 of the hedge funds we track were long in this stock, a change of -12% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes significantly.

When using filings from the hedgies we track, Paul Singer’s Elliott Management had the largest position in Delphi Automotive PLC (NYSE:DLPH), worth close to $911.5 million, comprising 17.5% of its total 13F portfolio. Sitting at the No. 2 spot is Natixis Global Asset Management of Harris Associates, with a $692.1 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Other peers that hold long positions include Richard S. Pzena’s Pzena Investment Management, Edward A. Mule’s Silver Point Capital and Doug Silverman and Alexander Klabin’s Senator Investment Group.

Judging by the fact that Delphi Automotive PLC (NYSE:DLPH) has experienced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that slashed their entire stakes at the end of the second quarter. At the top of the heap, Dan Loeb’s Third Point cut the biggest stake of the “upper crust” of funds we watch, worth about $133.2 million in stock. Kevin Michael Ulrich’s fund, Anchorage Advisors, also dumped its stock, about $79.1 million worth. These moves are interesting, as total hedge fund interest was cut by 6 funds at the end of the second quarter.

Insider trading activity in Delphi Automotive PLC (NYSE:DLPH)

Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last six-month time frame, Delphi Automotive PLC (NYSE:DLPH) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Delphi Automotive PLC (NYSE:DLPH). These stocks are LKQ Corporation (NASDAQ:LKQ), TRW Automotive Holdings Corp. (NYSE:TRW), Autoliv Inc. (NYSE:ALV), Johnson Controls, Inc. (NYSE:JCI), and BorgWarner Inc. (NYSE:BWA). All of these stocks are in the auto parts industry and their market caps are similar to DLPH’s market cap.

Using the returns demonstrated by Insider Monkey’s research, average investors must always keep one eye on hedge fund and insider trading activity, and Delphi Automotive PLC (NYSE:DLPH) is an important part of this process.

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