CoStar Group Inc (NASDAQ:CSGP) was in 8 hedge funds’ portfolio at the end of December. CSGP investors should pay attention to a decrease in support from the world’s most elite money managers lately. There were 8 hedge funds in our database with CSGP positions at the end of the previous quarter.
If you’d ask most shareholders, hedge funds are assumed to be unimportant, outdated financial vehicles of the past. While there are greater than 8000 funds with their doors open today, we at Insider Monkey choose to focus on the masters of this group, close to 450 funds. Most estimates calculate that this group oversees the majority of the smart money’s total capital, and by watching their highest performing stock picks, we have determined a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outstripped 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 beaten the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).
Equally as integral, positive insider trading activity is a second way to parse down the marketplace. Just as you’d expect, there are plenty of stimuli for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this tactic if piggybackers understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a glance at the recent action encompassing CoStar Group Inc (NASDAQ:CSGP).
Hedge fund activity in CoStar Group Inc (NASDAQ:CSGP)
In preparation for this year, a total of 8 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes substantially.
According to our comprehensive database, Daruma Asset Management, managed by Mariko Gordon, holds the biggest position in CoStar Group Inc (NASDAQ:CSGP). Daruma Asset Management has a $63.6 million position in the stock, comprising 3.7% of its 13F portfolio. Sitting at the No. 2 spot is Columbus Circle Investors, managed by Donald Chiboucis, which held a $46 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Jim Simons’s Renaissance Technologies, Joseph A. Jolson’s Harvest Capital Strategies and Richard Driehaus’s Driehaus Capital.
Since CoStar Group Inc (NASDAQ:CSGP) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of hedge funds that elected to cut their full holdings last quarter. At the top of the heap, Israel Englander’s Millennium Management dumped the biggest position of all the hedgies we monitor, comprising about $0.2 million in stock.. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also dumped its stock, about $0.1 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with CoStar Group Inc (NASDAQ:CSGP)?
Insider buying is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, CoStar Group Inc (NASDAQ:CSGP) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to CoStar Group Inc (NASDAQ:CSGP). These stocks are Acadia Realty Trust (NYSE:AKR), Icahn Enterprises LP (NASDAQ:IEP), DuPont Fabros Technology, Inc. (NYSE:DFT), Jones Lang LaSalle Inc (NYSE:JLL), and Forest City Enterprises, Inc. (NYSE:FCE-A). This group of stocks are in the property management industry and their market caps match CSGP’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Acadia Realty Trust (NYSE:AKR)||5||0||6|
|Icahn Enterprises LP (NASDAQ:IEP)||3||6||0|
|DuPont Fabros Technology, Inc. (NYSE:DFT)||6||0||2|
|Jones Lang LaSalle Inc (NYSE:JLL)||13||0||6|
|Forest City Enterprises, Inc. (NYSE:FCE-A)||0||0|
With the results shown by the aforementioned strategies, retail investors should always watch hedge fund and insider trading sentiment, and CoStar Group Inc (NASDAQ:CSGP) shareholders fit into this picture quite nicely.