According to most traders, hedge funds are seen as worthless, outdated investment vehicles of yesteryear. While there are over 8000 funds with their doors open at present, we at Insider Monkey choose to focus on the leaders of this club, around 450 funds. It is estimated that this group oversees the majority of the smart money’s total asset base, and by paying attention to their highest performing stock picks, we have deciphered a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).
Just as key, positive insider trading sentiment is a second way to break down the world of equities. Obviously, there are plenty of motivations for a bullish insider to drop shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if “monkeys” understand what to do (learn more here).
Consequently, it’s important to take a glance at the latest action surrounding Regency Centers Corp (NYSE:REG).
How are hedge funds trading Regency Centers Corp (NYSE:REG)?
At the end of the fourth quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 100% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Ken Griffin’s Citadel Investment Group had the biggest position in Regency Centers Corp (NYSE:REG), worth close to $69.2 million, comprising 0.1% of its total 13F portfolio. Coming in second is D E Shaw, managed by D. E. Shaw, which held a $57.2 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include Jeffrey Furber’s AEW Capital Management, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
Now, specific money managers have jumped into Regency Centers Corp (NYSE:REG) headfirst. Renaissance Technologies, managed by Jim Simons, established the most outsized position in Regency Centers Corp (NYSE:REG). Renaissance Technologies had 17.8 million invested in the company at the end of the quarter. Ken Gray and Steve Walsh’s Bryn Mawr Capital also initiated a $5 million position during the quarter. The following funds were also among the new REG investors: David Costen Haley’s HBK Investments, Thomas Bailard’s Bailard Inc, and Glenn Russell Dubin’s Highbridge Capital Management.
Insider trading activity in Regency Centers Corp (NYSE:REG)
Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time frame, Regency Centers Corp (NYSE:REG) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Regency Centers Corp (NYSE:REG). These stocks are Hospitality Properties Trust (NYSE:HPT), CBL & Associates Properties, Inc. (NYSE:CBL), Weingarten Realty Investors (NYSE:WRI), DDR Corp (NYSE:DDR), and Taubman Centers, Inc. (NYSE:TCO). This group of stocks are in the reit – retail industry and their market caps are similar to REG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hospitality Properties Trust (NYSE:HPT) | 9 | 1 | 1 |
| CBL & Associates Properties, Inc. (NYSE:CBL) | 9 | 3 | 3 |
| Weingarten Realty Investors (NYSE:WRI) | 12 | 0 | 1 |
| DDR Corp (NYSE:DDR) | 9 | 0 | 7 |
| Taubman Centers, Inc. (NYSE:TCO) | 14 | 2 | 4 |
With the returns demonstrated by Insider Monkey’s studies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Regency Centers Corp (NYSE:REG) is no exception.
