Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in the major indices. In this article, we will take a closer look at hedge fund sentiment towards Hudson Pacific Properties Inc (NYSE:HPP).
Is Hudson Pacific Properties Inc (NYSE:HPP) the right pick for your portfolio? Investors who are in the know are taking a bearish view. The number of bullish hedge fund bets shrunk by 3 recently. Hudson Pacific Properties Inc (NYSE:HPP) was in 14 hedge funds’ portfolios at the end of the third quarter of 2015. There were 17 hedge funds in our database with Hudson Pacific Properties Inc (NYSE:HPP) positions at the end of the previous quarter. At the end of this article, we will also compare Hudson Pacific Properties Inc (NYSE:HPP) to other stocks, including Wintrust Financial Corp (NASDAQ:WTFC), Infinera Corp. (NASDAQ:INFN), and Clean Harbors Inc (NYSE:CLH) to get a better sense of its popularity.
Today, there are plenty of gauges stock market investors use to value stocks. A pair of the less known gauges are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the best picks of the top investment managers can outperform their index-focused peers by a significant margin (see the details here).
With all of this in mind, we’re going to take a peek at the recent action surrounding Hudson Pacific Properties Inc (NYSE:HPP).
How are hedge funds trading Hudson Pacific Properties Inc (NYSE:HPP)?
At the end of September, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 18% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Farallon Capital holds the most valuable position in Hudson Pacific Properties Inc (NYSE:HPP). Farallon Capital has a $104.2 million position in the stock, comprising 1.4% of its 13F portfolio. The second most bullish fund manager is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which holds a $42.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism comprise Israel Englander’s Millennium Management, Renaissance Technologies, and D E Shaw.