Hertz Global Holdings, Inc. (NYSE:HTZ): Hedge Funds Are Bailing Out; Icahn, Rosenstein Like It


Hertz Global Holdings, Inc. (NYSE:HTZ) investors should be aware of a sharp decrease in hedge fund interest of late. You probably already know about Icahn’s and Rosenstein’s increased bets on the stock. However, other hedge funds were entirely selling out their holdings recently. The  number of hedge funds with bullish Hertz bets decreased by 21 during the third quarter. Should you pay attention to hedge fund moves in your stock investments?

Today there are dozens of gauges shareholders put to use to assess publicly traded companies. Some of the most underrated gauges are hedge fund and insider trading sentiment. Experts at hedge fund tracking site Insider Monkey have shown that, historically, those who follow the best picks of the best fund managers can outpace the market by a solid margin (see the details here).

So, it may make sense to track hedge fund moves. In this article we’re going to go over the fresh action surrounding Hertz Global Holdings, Inc. (NYSE:HTZ).

Hedge fund activity in Hertz Global Holdings, Inc. (NYSE:HTZ)

At Q3’s end, a total of 83 of the hedge funds tracked by Insider Monkey were long in this stock, a change of -21% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly.

According to hedge fund intelligence website Insider Monkey, Carl Icahn’s Icahn Capital LP had the number one position in Hertz Global Holdings, Inc. (NYSE:HTZ), worth close to $985.1 million, amounting to 2.9% of its total 13F portfolio. On Icahn Capital LP’s heels is SRS Investment Management, led by Karthik Sarma, holding a $507.8 million position; the fund has 20.3% of its 13F portfolio invested in the stock. Other peers with similar optimism consist of Larry Robbins’s Glenview Capital, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC and Jonathon Jacobson’s Highfields Capital Management.

Seeing as Hertz Global Holdings, Inc. (NYSE:HTZ) has witnessed declining sentiment from the smart money, it’s easy to see that there exists a select few money managers that decided to sell off their positions entirely last quarter. It’s worth mentioning that Dan Loeb’s Third Point said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, comprising an estimated $161.2 million in stock. Richard Barrera’s fund, Roystone Capital Partners, also said goodbye to its stock, about $80.8 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 22 funds last quarter.

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