In the financial world, there are plenty of gauges investors can use to track Mr. Market. A couple of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can beat their index-focused peers by a healthy amount (see just how much).
Just as key, bullish insider trading activity is a second way to parse down the world of equities. As the old adage goes: there are many stimuli for an executive to cut shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).
Now, we’re going to take a glance at the recent action encompassing Kite Realty Group Trust (NYSE:KRG).
What does the smart money think about Kite Realty Group Trust (NYSE:KRG)?
At the end of the first quarter, a total of 5 of the hedge funds we track were long in this stock, a change of -17% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Balyasny Asset Management, managed by Dmitry Balyasny, holds the biggest position in Kite Realty Group Trust (NYSE:KRG). Balyasny Asset Management has a $2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $1.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, Mike Vranos’s Ellington and Israel Englander’s Millennium Management.
Due to the fact that Kite Realty Group Trust (NYSE:KRG) has witnessed bearish sentiment from the smart money, it’s safe to say that there is a sect of hedge funds that slashed their full holdings at the end of the first quarter. It’s worth mentioning that Thomas Bailard’s Bailard Inc sold off the biggest position of the “upper crust” of funds we key on, worth an estimated $0.1 million in stock., and Matthew Hulsizer of PEAK6 Capital Management was right behind this move, as the fund said goodbye to about $0.1 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 1 funds at the end of the first quarter.
What do corporate executives and insiders think about Kite Realty Group Trust (NYSE:KRG)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, Kite Realty Group Trust (NYSE:KRG) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Kite Realty Group Trust (NYSE:KRG). 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 Cedar Realty Trust Inc (NYSE:CDR). All of these stocks are in the reit – retail industry and their market caps are closest to KRG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Saul Centers Inc (NYSE:BFS) | 5 | 1 | 7 |
| Retail Opportunity Investments Corp (NASDAQ:ROIC) | 12 | 1 | 0 |
| Urstadt Biddle Properties Inc (NYSE:UBA) | 5 | 0 | 1 |
| Getty Realty Corp. (NYSE:GTY) | 5 | 0 | 0 |
| Cedar Realty Trust Inc (NYSE:CDR) | 8 | 0 | 0 |
With the returns demonstrated by Insider Monkey’s strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Kite Realty Group Trust (NYSE:KRG) shareholders fit into this picture quite nicely.
