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Hedge Funds Are Buying Mid America Apartment Communities Inc (MAA)

Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Mid America Apartment Communities Inc (NYSE:MAA) based on that data.

Is Mid America Apartment Communities Inc (NYSE:MAA) a good investment today? Hedge funds are buying. The number of long hedge fund positions inched up by 1 recently. Our calculations also showed that maa isn’t among the 30 most popular stocks among hedge funds.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Phill Gross, Adage Capital Management

We’re going to check out the latest hedge fund action regarding Mid America Apartment Communities Inc (NYSE:MAA).

Hedge fund activity in Mid America Apartment Communities Inc (NYSE:MAA)

At the end of the third quarter, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from the second quarter of 2018. Below, you can check out the change in hedge fund sentiment towards MAA over the last 13 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with MAA Positions

According to Insider Monkey’s hedge fund database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Mid America Apartment Communities Inc (NYSE:MAA). Renaissance Technologies has a $144.4 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is Diamond Hill Capital, managed by Ric Dillon, which holds a $77.4 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers that hold long positions contain Ken Fisher’s Fisher Asset Management, Israel Englander’s Millennium Management and Phill Gross and Robert Atchinson’s Adage Capital Management.

Now, some big names have been driving this bullishness. Millennium Management, managed by Israel Englander, initiated the most valuable position in Mid America Apartment Communities Inc (NYSE:MAA). Millennium Management had $16 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1.6 million position during the quarter. The other funds with new positions in the stock are J. Alan Reid, Jr.’s Forward Management, Dmitry Balyasny’s Balyasny Asset Management, and D. E. Shaw’s D E Shaw.

Let’s also examine hedge fund activity in other stocks similar to Mid America Apartment Communities Inc (NYSE:MAA). These stocks are Live Nation Entertainment, Inc. (NYSE:LYV), NRG Energy Inc (NYSE:NRG), ANGI Homeservices Inc. (NASDAQ:ANGI), and Masco Corporation (NYSE:MAS). All of these stocks’ market caps are closest to MAA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LYV 38 966519 6
NRG 50 2189506 1
ANGI 19 482435 6
MAS 35 1069198 5
Average 35.5 1176915 4.5

View table here if you experience formatting issues.

As you can see these stocks had an average of 35.5 hedge funds with bullish positions and the average amount invested in these stocks was $1.18 billion. That figure was $317 million in MAA’s case. NRG Energy Inc (NYSE:NRG) is the most popular stock in this table. On the other hand ANGI Homeservices Inc. (NASDAQ:ANGI) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Mid America Apartment Communities Inc (NYSE:MAA) is even less popular than ANGI. 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.

Disclosure: None. This article was originally published at Insider Monkey.

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