CBRE Group Inc (NYSE:CBG) has experienced an increase in hedge fund sentiment recently.
In today’s marketplace, there are dozens of gauges market participants can use to analyze their holdings. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can trounce the market by a superb amount (see just how much).
Just as integral, optimistic insider trading sentiment is another way to break down the stock market universe. As the old adage goes: there are many reasons for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this tactic if you understand where to look (learn more here).
Keeping this in mind, let’s take a peek at the latest action regarding CBRE Group Inc (NYSE:CBG).
What does the smart money think about CBRE Group Inc (NYSE:CBG)?
In preparation for this quarter, a total of 27 of the hedge funds we track held long positions in this stock, a change of 29% from the previous quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes significantly.
According to our comprehensive database, Jeffrey Ubben’s ValueAct Capital had the most valuable position in CBRE Group Inc (NYSE:CBG), worth close to $808 million, accounting for 9.1% of its total 13F portfolio. Sitting at the No. 2 spot is Blum Capital Partners, managed by Richard Blum, which held a $379.4 million position; 57.7% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Robert Joseph Caruso’s Select Equity Group, Christopher Medlock James’s Partner Fund Management and James Dinan’s York Capital Management.
As aggregate interest increased, some big names have been driving this bullishness. York Capital Management, managed by James Dinan, created the biggest position in CBRE Group Inc (NYSE:CBG). York Capital Management had 160.3 million invested in the company at the end of the quarter. Ken Heebner’s Capital Growth Management also initiated a $73.2 million position during the quarter. The other funds with brand new CBG positions are Daniel Gold’s QVT Financial, Dmitry Balyasny’s Balyasny Asset Management, and Scott Scher & Michael Prober’s Clovis Capital Management.
Insider trading activity in CBRE Group Inc (NYSE:CBG)
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past half-year. Over the last half-year time frame, CBRE Group Inc (NYSE:CBG) has experienced zero unique insiders buying, and 7 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 CBRE Group Inc (NYSE:CBG). These stocks are Jones Lang LaSalle Inc (NYSE:JLL), Icahn Enterprises LP (NASDAQ:IEP), Realogy Holdings Corp (NYSE:RLGY), and Brookfield Office Properties Inc (USA) (NYSE:BPO). This group of stocks belong to the property management industry and their market caps resemble CBG’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Jones Lang LaSalle Inc (NYSE:JLL)||16||0||6|
|Icahn Enterprises LP (NASDAQ:IEP)||5||6||0|
|Realogy Holdings Corp (NYSE:RLGY)||35||0||7|
|Brookfield Office Properties Inc (USA) (NYSE:BPO)||7||0||0|
With the returns demonstrated by Insider Monkey’s studies, retail investors must always monitor hedge fund and insider trading sentiment, and CBRE Group Inc (NYSE:CBG) is no exception.