Boston Properties, Inc. (NYSE:BXP) has experienced a decrease in enthusiasm from smart money in recent months.
According to most traders, hedge funds are viewed as unimportant, old investment vehicles of years past. While there are greater than 8000 funds in operation at present, we at Insider Monkey choose to focus on the elite of this group, around 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total capital, and by paying attention to their highest performing stock picks, we have formulated a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Just as important, positive insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are a variety of stimuli for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this method if “monkeys” understand where to look (learn more here).
Consequently, let’s take a glance at the latest action encompassing Boston Properties, Inc. (NYSE:BXP).
Hedge fund activity in Boston Properties, Inc. (NYSE:BXP)
In preparation for this year, a total of 18 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our comprehensive database, AEW Capital Management, managed by Jeffrey Furber, holds the most valuable position in Boston Properties, Inc. (NYSE:BXP). AEW Capital Management has a $218 million position in the stock, comprising 5.8% of its 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $202 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include D. E. Shaw’s D E Shaw, Clint Carlson’s Carlson Capital and Jim Simons’s Renaissance Technologies.
Seeing as Boston Properties, Inc. (NYSE:BXP) has experienced bearish sentiment from the smart money, we can see that there lies a certain “tier” of money managers that elected to cut their positions entirely at the end of the year. At the top of the heap, Ken Heebner’s Capital Growth Management dropped the biggest investment of the “upper crust” of funds we track, worth an estimated $75 million in stock.. Douglas W. Case’s fund, Advanced Investment Partners, also dropped its stock, about $1 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Boston Properties, Inc. (NYSE:BXP)?
Insider purchases made by high-level executives is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Boston Properties, Inc. (NYSE:BXP) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
With the results demonstrated by the aforementioned studies, everyday investors should always pay attention to hedge fund and insider trading activity, and Boston Properties, Inc. (NYSE:BXP) applies perfectly to this mantra.
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