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Is Post Properties Inc (PPS) Worthy of Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. At the top of the heap, Eduardo Abush’s Waterfront Capital Partners got rid of the biggest investment of all the investors studied by Insider Monkey, valued at about $5.1 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund cut about $3.8 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Post Properties Inc (NYSE:PPS) but similarly valued. We will take a look at NRG Energy Inc (NYSE:NRG), First Horizon National Corporation (NYSE:FHN), Ryder System, Inc. (NYSE:R), and EPAM Systems Inc (NYSE:EPAM). This group of stocks’ market caps are closest to PPS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NRG 31 331194 6
FHN 17 262442 -3
R 23 269363 -1
EPAM 15 213757 -9

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $269 million. That figure was $273 million in PPS’s case. NRG Energy Inc (NYSE:NRG) is the most popular stock in this table. On the other hand EPAM Systems Inc (NYSE:EPAM) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Post Properties Inc (NYSE:PPS) is even less popular than EPAM. 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.

Disclosure: None