Realogy Holdings Corp (NYSE:RLGY) shareholders have witnessed a decrease in hedge fund interest lately.
At the moment, there are a multitude of methods shareholders can use to watch Mr. Market. A pair of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can beat the broader indices by a significant amount (see just how much).
Just as beneficial, optimistic insider trading sentiment is another way to break down the marketplace. Obviously, there are a variety of incentives for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).
Consequently, let's take a peek at the latest action encompassing Realogy Holdings Corp (NYSE:RLGY).
At Q1's end, a total of 35 of the hedge funds we track held long positions in this stock, a change of -5% from the first quarter. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings substantially.
According to our comprehensive database, John Paulson's Paulson & Co had the biggest position in Realogy Holdings Corp (NYSE:RLGY), worth close to $649.7 million, comprising 3.7% of its total 13F portfolio. Coming in second is York Capital Management, managed by James Dinan, which held a $270.9 million position; 5.9% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include John Griffin's Blue Ridge Capital, Stephen Mandel's Lone Pine Capital and Peter Adam Hochfelder's Brahman Capital.
Seeing as Realogy Holdings Corp (NYSE:RLGY) has witnessed bearish sentiment from hedge fund managers, we can see that there exists a select few money managers who sold off their entire stakes in Q1. It's worth mentioning that David Keidan's Buckingham Capital Management dropped the largest position of all the hedgies we monitor, totaling close to $22.2 million in stock., and Kevin D. Eng of Columbus Hill Capital Management was right behind this move, as the fund said goodbye to about $4.2 million worth. These transactions are important to note, as total hedge fund interest dropped by 2 funds in Q1.
Insider trading activity, especially when it's bullish, is most useful when the company in focus has experienced transactions within the past half-year. Over the latest half-year time period, Realogy Holdings Corp (NYSE:RLGY) has seen zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
Let's also take a look at hedge fund and insider activity in other stocks similar to Realogy Holdings Corp (NYSE:RLGY). These stocks are Jones Lang LaSalle Inc (NYSE:JLL), Brookfield Office Properties Inc (USA) (NYSE:BPO), Icahn Enterprises LP (NASDAQ:IEP), and CBRE Group Inc (NYSE:CBG). This group of stocks are in the 0 industry and their market caps are similar to RLGY's market cap.