Eastgroup Properties Inc (EGP) Hedge Funds Are Snapping Up

As industrywide interest jumped, key money managers were leading the bulls’ herd. Two Sigma Advisors, led by John Overdeck and David Siegel, created the largest position in Eastgroup Properties Inc (NYSE:EGP). Two Sigma Advisors had $1.9 million invested in the company at the end of the quarter. The following funds were also among the new EGP investors: Mike Vranos’s Ellington and Louis Navellier’s Navellier & Associates.

Let’s now review hedge fund activity in other stocks similar to Eastgroup Properties Inc (NYSE:EGP). We will take a look at LendingClub Corp (NYSE:LC), Diamond Offshore Drilling Inc (NYSE:DO), Team Health Holdings LLC (NYSE:TMH), and Domtar Corp (USA) (NYSE:UFS). This group of stocks’ market values are similar to EGP’s market value.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $238 million. That figure was $12 million in EGP’s case. LendingClub Corp (NYSE:LC) is the most popular stock in this table. On the other hand Domtar Corp (USA) (NYSE:UFS) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Eastgroup Properties Inc (NYSE:EGP) is even less popular than UFS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.