Camden Property Trust (NYSE:CPT) has experienced a decrease in activity from the world’s largest hedge funds lately.
In the eyes of most shareholders, hedge funds are viewed as unimportant, old financial vehicles of the past. While there are over 8000 funds with their doors open today, we at Insider Monkey choose to focus on the moguls of this group, around 450 funds. It is widely believed that this group has its hands on the majority of all hedge funds’ total capital, and by watching their highest performing equity investments, we have identified a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 trumped the S&P 500 index by 24 percentage points in 7 months (see the details here).
Equally as key, optimistic insider trading activity is a second way to break down the financial markets. There are many stimuli for an insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).
With these “truths” under our belt, let’s take a look at the key action regarding Camden Property Trust (NYSE:CPT).
How are hedge funds trading Camden Property Trust (NYSE:CPT)?
In preparation for this year, a total of 10 of the hedge funds we track were bullish in this stock, a change of -17% from the third quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Capital Growth Management, managed by Ken Heebner, holds the biggest position in Camden Property Trust (NYSE:CPT). Capital Growth Management has a $88 million position in the stock, comprising 2.3% of its 13F portfolio. On Capital Growth Management’s heels is AEW Capital Management, managed by Jeffrey Furber, which held a $79.9 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Israel Englander’s Millennium Management, John Overdeck and David Siegel’s Two Sigma Advisors and Cliff Asness’s AQR Capital Management.
Seeing as Camden Property Trust (NYSE:CPT) has experienced declining sentiment from hedge fund managers, logic holds that there is a sect of hedge funds who were dropping their full holdings last quarter. Interestingly, D. E. Shaw’s D E Shaw sold off the largest position of the 450+ funds we watch, worth about $6.9 million in stock.. Richard Schimel’s fund, Diamondback Capital, also said goodbye to its stock, about $1 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 2 funds last quarter.
What do corporate executives and insiders think about Camden Property Trust (NYSE:CPT)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past half-year. Over the last 180-day time period, Camden Property Trust (NYSE:CPT) has experienced zero unique insiders buying, and 12 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Camden Property Trust (NYSE:CPT). These stocks are Two Harbors Investment Corp (NYSE:TWO), American Campus Communities, Inc. (NYSE:ACC), Senior Housing Properties Trust (NYSE:SNH), UDR, Inc. (NYSE:UDR), and Essex Property Trust Inc (NYSE:ESS). All of these stocks are in the reit – residential industry and their market caps match CPT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Two Harbors Investment Corp (NYSE:TWO) | 18 | 6 | 0 |
| American Campus Communities, Inc. (NYSE:ACC) | 12 | 1 | 1 |
| Senior Housing Properties Trust (NYSE:SNH) | 8 | 0 | 0 |
| UDR, Inc. (NYSE:UDR) | 9 | 0 | 2 |
| Essex Property Trust Inc (NYSE:ESS) | 11 | 0 | 1 |
With the results exhibited by Insider Monkey’s tactics, retail investors must always monitor hedge fund and insider trading activity, and Camden Property Trust (NYSE:CPT) is no exception.
