Kimco Realty Corp (NYSE:KIM) was in 11 hedge funds’ portfolio at the end of the fourth quarter of 2012. KIM shareholders have witnessed a decrease in enthusiasm from smart money in recent months. There were 13 hedge funds in our database with KIM holdings at the end of the previous quarter.
At the moment, there are dozens of indicators market participants can use to watch stocks. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can trounce the S&P 500 by a superb margin (see just how much).
Equally as beneficial, bullish insider trading sentiment is another way to break down the stock market universe. As the old adage goes: there are lots of stimuli for an executive to sell shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this tactic if piggybackers know what to do (learn more here).
Now, it’s important to take a look at the latest action encompassing Kimco Realty Corp (NYSE:KIM).
What does the smart money think about Kimco Realty Corp (NYSE:KIM)?
At the end of the fourth quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of -15% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Kimco Realty Corp (NYSE:KIM). Renaissance Technologies has a $12 million position in the stock, comprising 0% of its 13F portfolio. On Renaissance Technologies’s heels is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $11 million position; the fund has 0% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, David Harding’s Winton Capital Management and J. Alan Reid, Jr.’s Forward Management.
Seeing as Kimco Realty Corp (NYSE:KIM) has faced a declination in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of fund managers that elected to cut their full holdings in Q4. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the biggest investment of the 450+ funds we monitor, comprising about $8 million in stock., and Bart Baum of Ionic Capital Management was right behind this move, as the fund dumped about $2 million worth. These transactions are important to note, as total hedge fund interest dropped by 2 funds in Q4.
How are insiders trading Kimco Realty Corp (NYSE:KIM)?
Bullish insider trading is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Kimco Realty Corp (NYSE:KIM) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Kimco Realty Corp (NYSE:KIM). These stocks are DDR Corp (NYSE:DDR), Federal Realty Investment Trust (NYSE:FRT), SL Green Realty Corp (NYSE:SLG), Realty Income Corp (NYSE:O), and Macerich Co (NYSE:MAC). All of these stocks are in the reit – retail industry and their market caps match KIM’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|DDR Corp (NYSE:DDR)||9||0||7|
|Federal Realty Investment Trust (NYSE:FRT)||12||0||2|
|SL Green Realty Corp (NYSE:SLG)||13||0||6|
|Realty Income Corp (NYSE:O)||6||0||6|
|Macerich Co (NYSE:MAC)||9||2||4|
With the results exhibited by the aforementioned studies, everyday investors should always pay attention to hedge fund and insider trading activity, and Kimco Realty Corp (NYSE:KIM) applies perfectly to this mantra.