Is General Motors Company (NYSE:GM) the right pick for your portfolio? Hedge funds in aggregate are taking a pessimistic view. The number of bullish hedge fund bets went down by 8 lately. GM was in 118 hedge funds’ portfolio at the end of September. There were 126 hedge funds in our database with GM positions at the end of the previous quarter. The good news is that billionaires such as Warren Buffett, David Tepper, and George Soros are bullish about the auto giant.
In today’s marketplace there are a lot of formulas stock market investors employ to grade their stock investments. A couple of the less utilized formulas are hedge fund and insider trading signals. Hedge fund experts at Insider Monkey have shown that, historically, those who follow the top picks of the elite fund managers can outclass the market by a huge amount (see just how much). General Motors is one of the most popular stocks among hedge funds. So, we’re going to go over the new action encompassing General Motors Company (NYSE:GM).
How have hedgies been trading General Motors Company (NYSE:GM)?
At Q3’s end, a total of 118 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -6% from the second quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies followed by Insider Monkey, Warren Buffett’s Berkshire Hathaway had the largest position in General Motors Company (NYSE:GM), worth close to $1.28 billion, accounting for 1.2% of its total 13F portfolio. The second largest stake is held by Appaloosa Management, managed by David Tepper, which held a $474.7 million position; the fund has 7% of its 13F portfolio invested in the stock. Other investors with similar optimism include William B. Gray’s Orbis Investment Management, Richard S. Pzena’s Pzena Investment Management and Frank Brosens’s Taconic Capital. George Soros also initiated a bullish call position in the stock during the third quarter.
Judging by the fact that General Motors Company (NYSE:GM) has experienced bearish sentiment from the smart money, it’s easy to see that there exists a select few fund managers that elected to cut their entire stakes last quarter. It’s worth mentioning that Ross Margolies’s Stelliam Investment Management dumped the largest stake of all the hedgies monitored by Insider Monkey, comprising an estimated $80 million in call options., and Kevin D. Eng of Columbus Hill Capital Management was right behind this move, as the fund dropped about $56.6 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 8 funds last quarter. However, the stock is still extremely popular in aggregate.