After several tireless days we have finished crunching the numbers from the more than 700 13F filings issued by the successful hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Apartment Investment and Management Co (NYSE:AIV).
Apartment Investment and Management Co (NYSE:AIV) has experienced a decrease in activity from the world’s largest hedge funds recently. The company was included in the 13F portfolios of 16 funds tracked by Insider Monkey at the end of September, compared to 20 funds a quarter earlier. At the end of this article we will also compare AIV to other stocks including American Campus Communities, Inc. (NYSE:ACC), NetApp Inc. (NASDAQ:NTAP), and Jack Henry & Associates, Inc. (NASDAQ:JKHY) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
With all of this in mind, let’s check out the latest action regarding Apartment Investment and Management Co (NYSE:AIV).
Hedge fund activity in Apartment Investment and Management Co (NYSE:AIV)
At the end of the third quarter, 16 of the hedge funds tracked by Insider Monkey were bullish on Apartment Investment and Management Co (NYSE:AIV), down by 20% from the previous quarter. On the other hand, there were a total of 13 hedge funds with a bullish position in AIV at the beginning of this year. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Jim Simons’ Renaissance Technologies holds the most valuable position in Apartment Investment and Management Co (NYSE:AIV). Renaissance Technologies has a $62.8 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is Citadel Investment Group, led by Ken Griffin, holding a $30.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism comprise Eduardo Abush’s Waterfront Capital Partners, Phill Gross and Robert Atchinson’s Adage Capital Management and Michael Swotes’ Castle Ridge Investment Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Intriguingly, Israel Englander’s Millennium Management cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, valued at about $69.9 million in stock, and Malcolm Fairbairn’s Ascend Capital was right behind this move, as the fund dropped about $14.2 million worth of shares.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Apartment Investment and Management Co (NYSE:AIV) but similarly valued. We will take a look at American Campus Communities, Inc. (NYSE:ACC), NetApp Inc. (NASDAQ:NTAP), Jack Henry & Associates, Inc. (NASDAQ:JKHY), and Computer Sciences Corporation (NYSE:CSC). This group of stocks’ market valuations are closest to AIV’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 22 funds with bullish positions and the average amount invested in these stocks was $629 million, compared to $165 million in AIV’s case. Computer Sciences Corporation (NYSE:CSC) is the most popular stock in this table. On the other hand Jack Henry & Associates, Inc. (NASDAQ:JKHY) is the least popular one with only 13 bullish hedge fund positions. Apartment Investment and Management Co (NYSE:AIV) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Computer Sciences Corporation (NYSE:CSC) might be a better candidate to consider taking a long position in.