Is it smart to be bullish on Cedar Realty Trust Inc (NYSE:CDR)?
To many investors, hedge funds are viewed as overrated, outdated investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds in operation currently, Insider Monkey focuses on the crème de la crème of this group, around 525 funds. Analysts calculate that this group oversees the lion’s share of the smart money’s total assets, and by keeping an eye on their highest performing stock picks, we’ve spotted a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as crucial, bullish insider trading activity is a second way to analyze the world of equities. There are a variety of reasons for an executive to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this method if piggybackers know where to look (learn more here).
Keeping this in mind, we’re going to examine the recent info about Cedar Realty Trust Inc (NYSE:CDR).
What does the smart money think about Cedar Realty Trust Inc (NYSE:CDR)?
At the end of the second quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 50% from the first quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings significantly.
Out of the hedge funds we follow, Robert Jaffe’s Force Capital had the biggest position in Cedar Realty Trust Inc (NYSE:CDR), worth close to $3 million, accounting for 0.4% of its total 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $1.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Martin Whitman’s Third Avenue Management.
Now, certain bigger names have jumped into Cedar Realty Trust Inc (NYSE:CDR) headfirst. Force Capital, managed by Robert Jaffe, established the largest position in Cedar Realty Trust Inc (NYSE:CDR). Force Capital had 3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1.4 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management, and Martin Whitman’s Third Avenue Management.
How have insiders been trading Cedar Realty Trust Inc (NYSE:CDR)?
Legal insider trading, particularly when it’s bullish, is most useful when the company in question has experienced transactions within the past six months. Over the latest six-month time period, Cedar Realty Trust Inc (NYSE:CDR) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Cedar Realty Trust Inc (NYSE:CDR). These stocks are Saul Centers Inc (NYSE:BFS), Retail Opportunity Investments Corp (NASDAQ:ROIC), Urstadt Biddle Properties Inc (NYSE:UBA), Getty Realty Corp. (NYSE:GTY), and Kite Realty Group Trust (NYSE:KRG). This group of stocks are the members of the reit – retail industry and their market caps are closest to CDR’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Saul Centers Inc (NYSE:BFS)||4||0||0|
|Retail Opportunity Investments Corp (NASDAQ:ROIC)||11||0||0|
|Urstadt Biddle Properties Inc (NYSE:UBA)||5||0||0|
|Getty Realty Corp. (NYSE:GTY)||6||0||0|
|Kite Realty Group Trust (NYSE:KRG)||9||0||0|
Using the results demonstrated by our research, average investors must always track hedge fund and insider trading activity, and Cedar Realty Trust Inc (NYSE:CDR) applies perfectly to this mantra.