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Is Mack-Cali Realty Corporation (CLI) Going To Burn These Hedge Funds ?

The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 28. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Mack-Cali Realty Corporation (NYSE:CLI).

Is Mack-Cali Realty Corporation (NYSE:CLI) ready to rally soon? Investors who are in the know are getting more optimistic. The number of long hedge fund bets inched up by 2 in recent months. Our calculations also showed that CLI isn’t among the 30 most popular stocks among hedge funds (view the video below). CLI was in 13 hedge funds’ portfolios at the end of the second quarter of 2019. There were 11 hedge funds in our database with CLI positions at the end of the previous quarter.
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

In the financial world there are a lot of tools market participants employ to grade publicly traded companies. Two of the most underrated tools are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the top investment managers can outclass the broader indices by a superb amount (see the details here).

AQR CAPITAL MANAGEMENT

Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let’s take a look at the fresh hedge fund action regarding Mack-Cali Realty Corporation (NYSE:CLI).

How are hedge funds trading Mack-Cali Realty Corporation (NYSE:CLI)?

Heading into the third quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 18% from the first quarter of 2019. On the other hand, there were a total of 14 hedge funds with a bullish position in CLI a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with CLI Positions

More specifically, Renaissance Technologies was the largest shareholder of Mack-Cali Realty Corporation (NYSE:CLI), with a stake worth $116.7 million reported as of the end of March. Trailing Renaissance Technologies was Land & Buildings Investment Management, which amassed a stake valued at $15.8 million. Fisher Asset Management, Citadel Investment Group, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Land & Buildings Investment Management, managed by Jonathan Litt, established the biggest position in Mack-Cali Realty Corporation (NYSE:CLI). Land & Buildings Investment Management had $15.8 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $2.7 million investment in the stock during the quarter. The other funds with brand new CLI positions are Richard Driehaus’s Driehaus Capital, John Overdeck and David Siegel’s Two Sigma Advisors, and Israel Englander’s Millennium Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Mack-Cali Realty Corporation (NYSE:CLI) but similarly valued. These stocks are Sanmina Corporation (NASDAQ:SANM), Otter Tail Corporation (NASDAQ:OTTR), Akcea Therapeutics, Inc. (NASDAQ:AKCA), and Stepan Company (NYSE:SCL). This group of stocks’ market caps match CLI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SANM 18 193604 0
OTTR 12 77316 2
AKCA 8 23583 1
SCL 11 55727 -5
Average 12.25 87558 -0.5

View table here if you experience formatting issues.

As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $88 million. That figure was $154 million in CLI’s case. Sanmina Corporation (NASDAQ:SANM) is the most popular stock in this table. On the other hand Akcea Therapeutics, Inc. (NASDAQ:AKCA) is the least popular one with only 8 bullish hedge fund positions. Mack-Cali Realty Corporation (NYSE:CLI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately CLI wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on CLI were disappointed as the stock returned -6.2% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.

Disclosure: None. This article was originally published at Insider Monkey.

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