Is Glimcher Realty Trust (NYSE:GRT) a healthy stock for your portfolio? The smart money is becoming less confident. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
In the financial world, there are plenty of indicators shareholders can use to watch Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can trounce the S&P 500 by a solid amount (see just how much).
Equally as important, bullish insider trading sentiment is a second way to break down the investments you’re interested in. Obviously, there are a variety of motivations for an executive to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).
Now, let’s take a gander at the recent action surrounding Glimcher Realty Trust (NYSE:GRT).
How have hedgies been trading Glimcher Realty Trust (NYSE:GRT)?
Heading into Q2, a total of 6 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably.
When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Glimcher Realty Trust (NYSE:GRT). Citadel Investment Group has a $8.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Citadel Investment Group’s heels is Renaissance Technologies, managed by Jim Simons, which held a $4.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Dmitry Balyasny’s Balyasny Asset Management, D. E. Shaw’s D E Shaw and Matthew Tewksbury’s Stevens Capital Management.
Judging by the fact that Glimcher Realty Trust (NYSE:GRT) has faced falling interest from the aggregate hedge fund industry, logic holds that there was a specific group of hedge funds that decided to sell off their entire stakes at the end of the first quarter. Intriguingly, Israel Englander’s Millennium Management dumped the biggest investment of the “upper crust” of funds we monitor, worth about $1.5 million in stock. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Glimcher Realty Trust (NYSE:GRT)?
Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past half-year. Over the last 180-day time frame, Glimcher Realty Trust (NYSE:GRT) has seen 1 unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Glimcher Realty Trust (NYSE:GRT). These stocks are EPR Properties (NYSE:EPR), Hersha Hospitality Trust (NYSE:HT), Washington Real Estate Investment Trust (NYSE:WRE), Northstar Realty Finance Corp. (NYSE:NRF), and Alexander’s, Inc. (NYSE:ALX). All of these stocks are in the reit – retail industry and their market caps are similar to GRT’s market cap.