Is Douglas Emmett, Inc. (NYSE:DEI) a healthy stock for your portfolio? Hedge funds are taking a bearish view. The number of long hedge fund positions went down by 3 lately.
To the average investor, there are many metrics investors can use to analyze publicly traded companies. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outpace their index-focused peers by a very impressive margin (see just how much).
Just as important, bullish insider trading activity is another way to break down the financial markets. Just as you’d expect, there are a number of motivations for a corporate insider to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the impressive potential of this tactic if investors know what to do (learn more here).
With all of this in mind, it’s important to take a peek at the latest action surrounding Douglas Emmett, Inc. (NYSE:DEI).
What have hedge funds been doing with Douglas Emmett, Inc. (NYSE:DEI)?
At the end of the fourth quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of -27% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes considerably.
According to our comprehensive database, Ken Griffin’s Citadel Investment Group had the biggest position in Douglas Emmett, Inc. (NYSE:DEI), worth close to $37.7 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Israel Englander of Millennium Management, with a $6.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Cliff Asness’s AQR Capital Management and J. Alan Reid, Jr.’s Forward Management.
Since Douglas Emmett, Inc. (NYSE:DEI) has faced falling interest from the aggregate hedge fund industry, logic holds that there exists a select few hedgies who were dropping their full holdings last quarter. It’s worth mentioning that SAC Subsidiary’s Sigma Capital Management dropped the largest stake of the 450+ funds we key on, totaling about $14.4 million in stock., and Steven Cohen of SAC Capital Advisors was right behind this move, as the fund dumped about $1.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds last quarter.
Insider trading activity in Douglas Emmett, Inc. (NYSE:DEI)
Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time period, Douglas Emmett, Inc. (NYSE:DEI) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Douglas Emmett, Inc. (NYSE:DEI). These stocks are National Retail Properties, Inc. (NYSE:NNN), Chimera Investment Corporation (NYSE:CIM), MFA Financial, Inc. (NYSE:MFA), Starwood Property Trust, Inc. (NYSE:STWD), and Retail Properties of America Inc (NYSE:RPAI). This group of stocks are in the reit – diversified industry and their market caps are closest to DEI’s market cap.