Is Essex Property Trust Inc (ESS) A Good Stock To Buy?

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Seeing as Essex Property Trust Inc (NYSE:ESS) has witnessed declining sentiment from the smart money, it’s safe to say that there were a few fund managers that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dropped the biggest investment of the 700 funds tracked by Insider Monkey, comprising an estimated $2.6 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also said goodbye to its stock, about $2.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 5 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Essex Property Trust Inc (NYSE:ESS). We will take a look at Ameriprise Financial, Inc. (NYSE:AMP), FirstEnergy Corp. (NYSE:FE), NetEase, Inc (ADR) (NASDAQ:NTES), and Workday Inc (NYSE:WDAY). This group of stocks’ market values are similar to ESS’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AMP 29 284431 -3
FE 31 1309307 4
NTES 39 2975270 12
WDAY 29 1406330 4

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1494 million. That figure was $360 million in ESS’s case. NetEase, Inc (ADR) (NASDAQ:NTES) is the most popular stock in this table. On the other hand Ameriprise Financial, Inc. (NYSE:AMP) is the least popular one with only 29 bullish hedge fund positions. Compared to these stocks Essex Property Trust Inc (NYSE:ESS) is even less popular than AMP. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None




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