SL Green Realty Corp (SLG): Are Hedge Funds Right About This Stock?

Page 1 of 2

Is SL Green Realty Corp (NYSE:SLG) an excellent investment now? Prominent investors are reducing their bets on the stock. The number of bullish hedge fund positions decreased by 5 in recent months.

In the eyes of most stock holders, hedge funds are viewed as unimportant, old investment vehicles of years past. While there are greater than 8000 funds with their doors open today, we at Insider Monkey look at the elite of this group, about 450 funds. Most estimates calculate that this group oversees the majority of all hedge funds’ total capital, and by tracking their top equity investments, we have brought to light a number of investment strategies that have historically outstripped the S&P 500 index. 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 started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Just as beneficial, bullish insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are many motivations for a bullish insider to get rid of shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the impressive potential of this tactic if piggybackers know where to look (learn more here).

Keeping this in mind, we’re going to take a look at the recent action surrounding SL Green Realty Corp (NYSE:SLG).

Hedge fund activity in SL Green Realty Corp (NYSE:SLG)

At Q1′s end, a total of 10 of the hedge funds we track held long positions in this stock, a change of -33% from the first quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes meaningfully.

3 REIT Preferred Stocks for Yield-Hungry InvestorsOf the funds we track, D. E. Shaw’s D E Shaw had the most valuable position in SL Green Realty Corp (NYSE:SLG), worth close to $14 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Robert Jaffe of Force Capital, with a $11.9 million position; 1.1% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Dmitry Balyasny’s Balyasny Asset Management, Curtis Macnguyen’s Ivory Capital (Investment Mgmt) and Cliff Asness’s AQR Capital Management.

Because SL Green Realty Corp (NYSE:SLG) has experienced a declination in interest from hedge fund managers, we can see that there exists a select few fund managers that decided to sell off their entire stakes heading into Q2. Intriguingly, Israel Englander’s Millennium Management dropped the biggest stake of the “upper crust” of funds we watch, worth an estimated $11.7 million in stock., and Jim Simons of Renaissance Technologies was right behind this move, as the fund dropped about $6.9 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 5 funds heading into Q2.

Insider trading activity in SL Green Realty Corp (NYSE:SLG)

Insider buying is most useful when the company in focus has seen transactions within the past half-year. Over the latest half-year time frame, SL Green Realty Corp (NYSE:SLG) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to SL Green Realty Corp (NYSE:SLG). These stocks are DDR Corp (NYSE:DDR), Kimco Realty Corp (NYSE:KIM), Macerich Co (NYSE:MAC), Federal Realty Investment Trust (NYSE:FRT), and Realty Income Corp (NYSE:O). This group of stocks belong to the reit – retail industry and their market caps are closest to SLG’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!