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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!