Is Chambers Street Properties (CSG) A Good Stock To Buy?

The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Chambers Street Properties (NYSE:CSG).

Chambers Street Properties investors should be aware of an increase in support from the world’s most elite money managers of late. At the end of this article we will also compare CSG to other stocks including Sanderson Farms, Inc. (NASDAQ:SAFM), Acxiom Corporation (NASDAQ:ACXM), and WMS Industries Inc. (NYSE:WMS) to get a better sense of its popularity.

In the eyes of most market participants, hedge funds are viewed as slow, outdated investment vehicles of the past. While there are more than 8000 funds with their doors open today, Our researchers choose to focus on the elite of this club, approximately 700 funds. Most estimates calculate that this group of people have their hands on the majority of the smart money’s total asset base, and by tracking their inimitable equity investments, Insider Monkey has determined a few investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

With all of this in mind, we’re going to go over the new action regarding Chambers Street Properties (NYSE:CSG).

What does the smart money think about Chambers Street Properties (NYSE:CSG)?

At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 43% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Douglas Dossey and Arthur Young’s Tensile Capital has the biggest position in Chambers Street Properties (NYSE:CSG), worth close to $29.3 million, corresponding to 8.8% of its total 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which holds a $22.9 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish comprise Jim Simons’s Renaissance Technologies, Shane Finemore’s Manikay Partners and Israel Englander’s Millennium Management.

As aggregate interest increased, some big names have been driving this bullishness. Manikay Partners, managed by Shane Finemore, assembled the most valuable position in Chambers Street Properties (NYSE:CSG). Manikay Partners had $17.9 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $6.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Arthur Wrubel’s Wesley Capital Management, Michael Thompson’s BHR Capital, and Chao Ku’s Nine Chapters Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Chambers Street Properties (NYSE:CSG) but similarly valued. These stocks are Sanderson Farms, Inc. (NASDAQ:SAFM), Acxiom Corporation (NASDAQ:ACXM), WMS Industries Inc. (NYSE:WMS), and Revlon Inc (NYSE:REV). This group of stocks’ market values are closest to CSG’s market value.

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $216 million. That figure was $129 million in CSG’s case. Sanderson Farms, Inc. (NASDAQ:SAFM) is the most popular stock in this table. On the other hand Revlon Inc (NYSE:REV) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Chambers Street Properties (NYSE:CSG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and the increase in the total number of elite funds long the stock, it may be a good idea to analyze it in detail and potentially include it in your portfolio.