Should You Avoid Boston Properties, Inc. (BXP)?

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Because Boston Properties, Inc. (NYSE:BXP) has encountered declining sentiment from hedge fund managers, it’s safe to say that there were a few funds who were dropping their full holdings by the end of the third quarter. Intriguingly, Michael Swotes’ Castle Ridge Investment Management cut the biggest investment of the 700 funds watched by Insider Monkey, comprising close to $4.6 million in stock. J. Alan Reid, Jr.’s fund, Forward Management, also dumped its stock, worth about $3.7 million.

Let’s go over hedge fund activity in other stocks similar to Boston Properties, Inc. (NYSE:BXP). These stocks are Sun Life Financial Inc. (USA) (NYSE:SLF), Marathon Petroleum Corp (NYSE:MPC), Cerner Corporation (NASDAQ:CERN), and Baker Hughes Incorporated (NYSE:BHI). This group of stocks’ market valuations are similar to BXP’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SLF 13 76979 3
MPC 53 2796683 10
CERN 25 873071 2
BHI 42 2644477 -2

As you can see these stocks had an average of 33 funds with bullish positions and the average amount invested in these stocks was $1.6 billion, which is higher than the $404 million figure in BXP’s case. Marathon Petroleum Corp (NYSE:MPC) is the most popular stock in this table, while Sun Life Financial Inc. (USA) (NYSE:SLF) is the least popular one with only 13 bullish hedge fund positions. Boston Properties, Inc. (NYSE:BXP) 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 Marathon Petroleum Corp (NYSE:MPC) might be a better candidate to consider taking a long position in.

Disclosure: None

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