In this article we will check out the progression of hedge fund sentiment towards Camden Property Trust (NYSE:CPT) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also employ numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Camden Property Trust (NYSE:CPT) was in 23 hedge funds’ portfolios at the end of September. The all time high for this statistic is 32. CPT has seen an increase in enthusiasm from smart money in recent months. There were 21 hedge funds in our database with CPT holdings at the end of June. Our calculations also showed that CPT isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Clint Carlson of Carlson Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let’s review the latest hedge fund action encompassing Camden Property Trust (NYSE:CPT).
Do Hedge Funds Think CPT Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards CPT over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Citadel Investment Group held the most valuable stake in Camden Property Trust (NYSE:CPT), which was worth $76.5 million at the end of the third quarter. On the second spot was Long Pond Capital which amassed $69.8 million worth of shares. Waterfront Capital Partners, V3 Capital, and Millennium Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position V3 Capital allocated the biggest weight to Camden Property Trust (NYSE:CPT), around 8.9% of its 13F portfolio. Waterfront Capital Partners is also relatively very bullish on the stock, designating 4.77 percent of its 13F equity portfolio to CPT.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, initiated the biggest position in Camden Property Trust (NYSE:CPT). Alyeska Investment Group had $22.5 million invested in the company at the end of the quarter. Clint Carlson’s Carlson Capital also made a $5.9 million investment in the stock during the quarter. The other funds with brand new CPT positions are Noam Gottesman’s GLG Partners, Greg Eisner’s Engineers Gate Manager, and Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital).
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Camden Property Trust (NYSE:CPT) but similarly valued. These stocks are LKQ Corporation (NASDAQ:LKQ), ABIOMED, Inc. (NASDAQ:ABMD), KANZHUN LIMITED (NASDAQ:BZ), NortonLifeLock Inc. (NASDAQ:NLOK), Plug Power, Inc. (NASDAQ:PLUG), CenterPoint Energy, Inc. (NYSE:CNP), and Arch Coal Inc (NYSE:ACI). This group of stocks’ market values resemble CPT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LKQ | 38 | 1694705 | 3 |
| ABMD | 25 | 921097 | 1 |
| BZ | 18 | 1170974 | -8 |
| NLOK | 34 | 1296792 | -2 |
| PLUG | 20 | 360413 | -14 |
| CNP | 14 | 134303 | -6 |
| ACI | 21 | 4509519 | 1 |
| Average | 24.3 | 1441115 | -3.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.3 hedge funds with bullish positions and the average amount invested in these stocks was $1441 million. That figure was $420 million in CPT’s case. LKQ Corporation (NASDAQ:LKQ) is the most popular stock in this table. On the other hand CenterPoint Energy, Inc. (NYSE:CNP) is the least popular one with only 14 bullish hedge fund positions. Camden Property Trust (NYSE:CPT) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CPT is 47.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. A small number of hedge funds were also right about betting on CPT as the stock returned 16.4% since the end of the third quarter (through 12/9) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
