The successful funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Eastgroup Properties Inc (NYSE:EGP) from the perspective of those successful funds.
Is Eastgroup Properties Inc (NYSE:EGP) an excellent investment right now? Investors who are in the know are categorically turning bullish. The number of long hedge fund bets swelled by 2 recently. EGP was in 8 hedge funds’ portfolios at the end of September. There were 6 hedge funds in our database with EGP positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as LendingClub Corp (NYSE:LC), Diamond Offshore Drilling Inc (NYSE:DO), and Team Health Holdings LLC (NYSE:TMH) to gather more data points.
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, we’re going to go over the fresh action regarding Eastgroup Properties Inc (NYSE:EGP).
Hedge fund activity in Eastgroup Properties Inc (NYSE:EGP)
At Q3’s end, a total of 8 of the hedge funds tracked by Insider Monkey were long this stock, a change of 33% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in EGP over the last 5 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, one of the 10 largest hedge funds in the world Millennium Management has the number one position in Eastgroup Properties Inc (NYSE:EGP), worth close to $4.7 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $3 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions consist of Matthew Tewksbury’s Stevens Capital Management and Thomas Bailard’s Bailard Inc. 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.