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Is Mid America Apartment Communities Inc (MAA) Going to Burn These Hedge Funds?

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Is Mid America Apartment Communities Inc (NYSE:MAA) worth your attention right now? Hedge funds are getting less bullish. The number of bullish hedge fund positions dropped by 5 in recent months.

Mid America Apartment Communities Inc (NYSE:MAA)

To most stock holders, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear. While there are more than 8000 funds trading at present, we choose to focus on the top tier of this group, about 450 funds. Most estimates calculate that this group has its hands on most of the smart money’s total capital, and by watching their highest performing stock picks, we have identified a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (see the details here).

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With all of this in mind, it’s important to take a gander at the recent action regarding Mid America Apartment Communities Inc (NYSE:MAA).

What have hedge funds been doing with Mid America Apartment Communities Inc (NYSE:MAA)?

At the end of the fourth quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -42% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Fisher Asset Management, managed by Ken Fisher, holds the largest position in Mid America Apartment Communities Inc (NYSE:MAA). Fisher Asset Management has a $48.4 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Diamond Hill Capital, managed by Ric Dillon, which held a $9.7 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, Jim Simons’s Renaissance Technologies and Ken Griffin’s Citadel Investment Group.

Because Mid America Apartment Communities Inc (NYSE:MAA) has experienced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds that slashed their positions entirely in Q4. It’s worth mentioning that Ken Heebner’s Capital Growth Management dropped the largest stake of the 450+ funds we watch, worth close to $7.4 million in stock., and Mike Vranos of Ellington was right behind this move, as the fund said goodbye to about $1.1 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 5 funds in Q4.

What have insiders been doing with Mid America Apartment Communities Inc (NYSE:MAA)?

Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Mid America Apartment Communities Inc (NYSE:MAA) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Mid America Apartment Communities Inc (NYSE:MAA). These stocks are ARMOUR Residential REIT, Inc. (NYSE:ARR), Post Properties Inc (NYSE:PPS), Home Properties, Inc. (NYSE:HME), Equity Lifestyle Properties, Inc. (NYSE:ELS), and Hatteras Financial Corp. (NYSE:HTS). This group of stocks belong to the reit – residential industry and their market caps are closest to MAA’s market cap.

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