To the average investor, there are dozens of gauges shareholders can use to track publicly traded companies. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outclass the market by a solid margin (see just how much).
Just as crucial, positive insider trading activity is a second way to look at the stock market universe. Just as you’d expect, there are many incentives for an insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this method if you understand what to do (learn more here).
Thus, let’s discuss the newest info for Essex Property Trust Inc (NYSE:ESS).
How are hedge funds trading Essex Property Trust Inc (NYSE:ESS)?
At Q2’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of -8% from the first quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.
Out of the hedge funds we follow, Ken Griffin’s Citadel Investment Group had the biggest position in Essex Property Trust Inc (NYSE:ESS), worth close to $88.8 million, accounting for 0.2% of its total 13F portfolio. Coming in second is John Overdeck and David Siegel of Two Sigma Advisors, with a $22.6 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Chuck Royce’s Royce & Associates, Ken Fisher’s Fisher Asset Management and Dmitry Balyasny’s Balyasny Asset Management.
Due to the fact Essex Property Trust Inc (NYSE:ESS) has faced a fall in interest from the top-tier hedge fund industry, logic holds that there exists a select few hedge funds who were dropping their entire stakes in Q1. Interestingly, Ken Heebner’s Capital Growth Management dropped the biggest stake of the “upper crust” of funds we track, totaling about $80.8 million in stock, and Greg Poole of Echo Street Capital Management was right behind this move, as the fund cut about $9.5 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds in Q1.
What do corporate executives and insiders think about Essex Property Trust Inc (NYSE:ESS)?
Bullish insider trading is best served when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Essex Property Trust Inc (NYSE:ESS) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Essex Property Trust Inc (NYSE:ESS). These stocks are Two Harbors Investment Corp (NYSE:TWO), American Campus Communities, Inc. (NYSE:ACC), Senior Housing Properties Trust (NYSE:SNH), UDR, Inc. (NYSE:UDR), and Camden Property Trust (NYSE:CPT). This group of stocks are the members of the reit – residential industry and their market caps resemble ESS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Two Harbors Investment Corp (NYSE:TWO)||24||0||0|
|American Campus Communities, Inc. (NYSE:ACC)||19||0||0|
|Senior Housing Properties Trust (NYSE:SNH)||10||0||0|
|UDR, Inc. (NYSE:UDR)||8||0||0|
|Camden Property Trust (NYSE:CPT)||11||0||0|
Using the results shown by the previously mentioned studies, regular investors should always watch hedge fund and insider trading activity, and Essex Property Trust Inc (NYSE:ESS) is an important part of this process.