Cousins Properties Inc (NYSE:CUZ) was in 10 hedge funds’ portfolio at the end of December. CUZ investors should be aware of a decrease in enthusiasm from smart money lately. There were 10 hedge funds in our database with CUZ holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are many indicators investors can use to track Mr. Market. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can beat the market by a healthy amount (see just how much).
Just as important, optimistic insider trading activity is another way to parse down the stock market universe. As the old adage goes: there are a variety of reasons for an executive to drop shares of his or her company, but just one, very clear reason why they would buy. Many academic studies have demonstrated the useful potential of this method if piggybackers understand where to look (learn more here).
Now, we’re going to take a peek at the recent action encompassing Cousins Properties Inc (NYSE:CUZ).
How have hedgies been trading Cousins Properties Inc (NYSE:CUZ)?
In preparation for this year, a total of 10 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the largest position in Cousins Properties Inc (NYSE:CUZ). Royce & Associates has a $7 million position in the stock, comprising 0% of its 13F portfolio. On Royce & Associates’s heels is Israel Englander of Millennium Management, with a $3 million position; the fund has 0% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Cliff Asness’s AQR Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Seeing as Cousins Properties Inc (NYSE:CUZ) has experienced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of fund managers who were dropping their positions entirely in Q4. Intriguingly, Mike Vranos’s Ellington dumped the biggest investment of all the hedgies we watch, worth about $0 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund dropped about $0 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Cousins Properties Inc (NYSE:CUZ)?
Insider buying is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time frame, Cousins Properties Inc (NYSE:CUZ) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Cousins Properties Inc (NYSE:CUZ). These stocks are Anworth Mortgage Asset Corporation (NYSE:ANH), iStar Financial Inc. (NYSE:SFI), Crexus Investment Corp (NYSE:CXS), Capstead Mortgage Corporation (NYSE:CMO), and Investors Real Estate Trust (NYSE:IRET). This group of stocks are the members of the reit – diversified industry and their market caps are closest to CUZ’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Anworth Mortgage Asset Corporation (NYSE:ANH) | 10 | 0 | 2 |
| iStar Financial Inc. (NYSE:SFI) | 20 | 1 | 2 |
| Crexus Investment Corp (NYSE:CXS) | 17 | 0 | 0 |
| Capstead Mortgage Corporation (NYSE:CMO) | 11 | 0 | 1 |
| Investors Real Estate Trust (NYSE:IRET) | 5 | 7 | 0 |
With the returns shown by Insider Monkey’s time-tested strategies, retail investors should always pay attention to hedge fund and insider trading sentiment, and Cousins Properties Inc (NYSE:CUZ) is an important part of this process.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.
