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Should You Buy CBRE Group Inc (CBG)?

Since CBRE Group Inc (NYSE:CBG) has faced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers that slashed their entire stakes last quarter. At the top of the heap, Jim Simons’ Renaissance Technologies sold off the largest investment of the 700 funds monitored by Insider Monkey, worth close to $23.4 million in stock, and Andrew Sandler’s Sandler Capital Management was right behind this move, as the fund dumped about $6.4 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as CBRE Group Inc (NYSE:CBG) but similarly valued. We will take a look at Newell Rubbermaid Inc. (NYSE:NWL), Fastenal Company (NASDAQ:FAST), Plains GP Holdings LP (NYSE:PAGP), and McCormick & Company, Incorporated (NYSE:MKC). All of these stocks’ market caps are closest to CBG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NWL 27 468886 8
FAST 17 300642 -2
PAGP 27 758247 4
MKC 19 86917 2

As you can see these stocks had an average of 22.5 hedge funds with bullish positions and the average amount invested in these stocks was $404 million. That figure was $1663 million in CBG’s case. Newell Rubbermaid Inc. (NYSE:NWL) is the most popular stock in this table. On the other hand Fastenal Company (NASDAQ:FAST) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks CBRE Group Inc (NYSE:CBG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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