Brookfield Residential Properties Inc (BRP): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Page 1 of 2

Is Brookfield Residential Properties Inc (NYSE:BRP) a healthy stock for your portfolio? Investors who are in the know are in a bullish mood. The number of bullish hedge fund positions inched up by 1 lately.

According to most shareholders, hedge funds are assumed to be unimportant, old financial vehicles of yesteryear. While there are greater than 8000 funds trading at present, we at Insider Monkey choose to focus on the masters of this group, close to 450 funds. It is estimated that this group oversees the lion’s share of the hedge fund industry’s total asset base, and by monitoring their highest performing picks, we have found a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

AQR CAPITAL MANAGEMENT

Just as integral, bullish insider trading activity is another way to break down the financial markets. Obviously, there are plenty of reasons for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if piggybackers know where to look (learn more here).

With all of this in mind, we’re going to take a glance at the latest action encompassing Brookfield Residential Properties Inc (NYSE:BRP).

What have hedge funds been doing with Brookfield Residential Properties Inc (NYSE:BRP)?

In preparation for this year, a total of 9 of the hedge funds we track were long in this stock, a change of 13% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings significantly.

When looking at the hedgies we track, Richard McGuire’s Marcato Capital Management had the largest position in Brookfield Residential Properties Inc (NYSE:BRP), worth close to $50.4 million, comprising 6.6% of its total 13F portfolio. The second largest stake is held by Horizon Asset Management, managed by Murray Stahl, which held a $42.6 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Joseph A. Jolson’s Harvest Capital Strategies, Carl Tiedemann and Michael Tiedemann’s TIG Advisors and Geoffrey Raynor’s Q Investments (Specter Holdings).

As one would reasonably expect, key money managers have been driving this bullishness. Halcyon Asset Management, managed by John Bader, created the largest position in Brookfield Residential Properties Inc (NYSE:BRP). Halcyon Asset Management had 1.8 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also made a $1.1 million investment in the stock during the quarter.

What have insiders been doing with Brookfield Residential Properties Inc (NYSE:BRP)?

Insider buying is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time frame, Brookfield Residential Properties Inc (NYSE:BRP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Brookfield Residential Properties Inc (NYSE:BRP). These stocks are Howard Hughes Corp (NYSE:HHC), American Realty Capital Properties Inc (NASDAQ:ARCP), Alexander & Baldwin Inc (NYSE:ALEX), and The St. Joe Company (NYSE:JOE). This group of stocks are in the real estate development industry and their market caps are closest to BRP’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!