Before we spend many hours researching a company, we’d like to analyze what hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last 12 months ending in October 30. Sixty three percent of these 30 stocks outperformed the market. Although the elite funds occasionally have their duds, such as Micron and Anadarko Petroleum, which fell 50% and 26%, respectively, during the same time period, the hedge fund picks seem to work on average. In the following paragraphs, we find out what the billionaire investors and hedge funds think of American Assets Trust, Inc (NYSE:AAT).
Is American Assets Trust, Inc (NYSE:AAT) a healthy stock for your portfolio? The smart money is becoming less hopeful. The number of bullish hedge fund bets shrunk by 3 lately. AAT was in 7 hedge funds’ portfolios at the end of September. There were 10 hedge funds in our database with AAT holdings at the end of the previous quarter. At the end of this article we will also compare AAT to other stocks, including Kemper Corporation (NYSE:KMPR), InterDigital, Inc. (NASDAQ:IDCC), and Evercore Partners Inc. (NYSE:EVR) to get a better sense of its popularity.
In today’s marketplace there are a multitude of tools investors can use to analyze publicly traded companies. Two of the most under-the-radar tools are hedge fund and insider trading activity. We have shown that, historically, those who follow the best picks of the best fund managers can outclass the market by a healthy amount (see the details here).
Keeping this in mind, we’re going to take a glance at the latest action regarding American Assets Trust, Inc (NYSE:AAT).
How have hedgies been trading American Assets Trust, Inc (NYSE:AAT)?
At Q3’s end, a total of 7 of the hedge funds tracked by Insider Monkey were bullish on this stock, down by 30% from the second quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, AEW Capital Management, managed by Jeffrey Furber, holds the number one position in American Assets Trust, Inc (NYSE:AAT) worth an estimated $56.7 million and comprising 1.3% of its 13F portfolio. Coming in second is Millennium Management, led by Israel Englander, holding a $21.6 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money with similar optimism comprise J. Alan Reid, Jr.’s Forward Management, Cliff Asness’s AQR Capital Management and Millennium Management Subsidiary’s Decade Capital Management.