Is Mpg Office Trust Inc (NYSE:MPG) a healthy stock for your portfolio? The best stock pickers are selling. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience
If you’d ask most shareholders, hedge funds are viewed as underperforming, old investment vehicles of yesteryear. While there are over 8000 funds in operation today, we hone in on the aristocrats of this group, around 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total capital, and by watching their highest performing equity investments, we have uncovered a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Equally as integral, bullish insider trading activity is a second way to break down the financial markets. As the old adage goes: there are a number of motivations for a corporate insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if investors know where to look (learn more here).
Consequently, it’s important to take a peek at the recent action surrounding Mpg Office Trust Inc (NYSE:MPG).
What have hedge funds been doing with Mpg Office Trust Inc (NYSE:MPG)?
At the end of the first quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Appaloosa Management LP, managed by David Tepper, holds the largest position in Mpg Office Trust Inc (NYSE:MPG). Appaloosa Management LP has a $11.3 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by York Capital Management, managed by James Dinan, which held a $5.5 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include J. Alan Reid, Jr.’s Forward Management, Brian J. Higgins’s King Street Capital and Sander Gerber’s Hudson Bay Capital Management.
Judging by the fact that Mpg Office Trust Inc (NYSE:MPG) has faced falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers who were dropping their entire stakes at the end of the first quarter. Interestingly, Alex von Furstenberg and Mal Serure’s Arrow Capital Management sold off the largest position of the “upper crust” of funds we monitor, totaling an estimated $5.5 million in stock.. John Khoury’s fund, Long Pond Capital, also cut its stock, about $3.4 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Mpg Office Trust Inc (NYSE:MPG)?
Bullish insider trading is best served when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Mpg Office Trust Inc (NYSE:MPG) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the results exhibited by our time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Mpg Office Trust Inc (NYSE:MPG) shareholders fit into this picture quite nicely.