We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Goodyear Tire & Rubber Co (NASDAQ:GT).
Goodyear Tire & Rubber Co (NASDAQ:GT) was in 38 hedge funds’ portfolios at the end of September. GT investors should be aware of an increase in enthusiasm from smart money in recent months. There were 34 hedge funds in our database with GT positions at the end of the previous quarter. At the end of this article we will also compare GT to other stocks including VimpelCom Ltd (ADR) (NYSE:VIP), Turquoise Hill Resources Ltd (NYSE:TRQ), and EQT GP Holdings LP (NYSE:EQGP) to get a better sense of its popularity.
Follow Goodyear Tire & Rubber Co (NASDAQ:GT)
Follow Goodyear Tire & Rubber Co (NASDAQ:GT)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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With all of this in mind, we’re going to view the new action encompassing Goodyear Tire & Rubber Co (NASDAQ:GT).
Hedge fund activity in Goodyear Tire & Rubber Co (NASDAQ:GT)
Heading into the fourth quarter of 2016, a total of 38 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 12% rise from the previous quarter. Overall, hedge fund ownership has remained incredibly stable over the past year, sitting between 34 and 38 funds long the stock. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the biggest position in Goodyear Tire & Rubber Co (NASDAQ:GT). Adage Capital Management has a $273.6 million position in the stock. On Adage Capital Management’s heels is Anchor Bolt Capital, led by Robert Polak, holding a $230.3 million position; the fund has 7.1% of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism encompass Ric Dillon’s Diamond Hill Capital, Richard McGuire’s Marcato Capital Management and Ken Griffin’s Citadel Investment Group.
Now, some big names have jumped into Goodyear Tire & Rubber Co (NASDAQ:GT) headfirst. Alyeska Investment Group, managed by Anand Parekh, created the largest position in Goodyear Tire & Rubber Co (NASDAQ:GT). Alyeska Investment Group had $91.7 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $50.1 million position during the quarter. The other funds with brand new GT positions are David Costen Haley’s HBK Investments, Ken Griffin’s Citadel Investment Group, and Alexander Mitchell’s Scopus Asset Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Goodyear Tire & Rubber Co (NASDAQ:GT) but similarly valued. These stocks are VimpelCom Ltd (ADR) (NYSE:VIP), Turquoise Hill Resources Ltd (NYSE:TRQ), EQT GP Holdings LP (NYSE:EQGP), and Carlisle Companies, Inc. (NYSE:CSL). This group of stocks’ market caps are closest to GT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VIP | 22 | 253443 | 12 |
| TRQ | 18 | 469171 | -2 |
| EQGP | 3 | 24730 | -1 |
| CSL | 24 | 362307 | 2 |
As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $277 million. That figure was $1712 million in GT’s case. Carlisle Companies, Inc. (NYSE:CSL) is the most popular stock in this table. On the other hand EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Goodyear Tire & Rubber Co (NASDAQ:GT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
