PS Business Parks Inc (PSB): Are Hedge Funds Right About This Stock?

Due to the fact that PS Business Parks Inc (NYSE:PSB) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedgies who sold off their positions entirely by the end of the third quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management sold off the largest stake of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $5.4 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund sold off about $1.1 million worth of PSB stock. These transactions are intriguing to say the least, as total hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to PS Business Parks Inc (NYSE:PSB). These stocks are Urban Edge Properties (NYSE:UE), NGL Energy Partners LP (NYSE:NGL), PDC Energy Inc (NASDAQ:PDCE), and Groupon Inc (NASDAQ:GRPN). All of these stocks’ market caps match PSB’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $130 million. That figure was $43 million in PSB’s case, which is not a very good sign. PDC Energy Inc (NASDAQ:PDCE) is the most popular stock in this table, while NGL Energy Partners LP (NYSE:NGL) is the laggard with only 7 bullish hedge fund positions. PS Business Parks Inc (NYSE:PSB) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PDCE might be a better candidate to consider a long position.