Thomas Properties Group, Inc. (TPGI): Hedge Funds Are Bullish, Should You Be?

Is Thomas Properties Group, Inc. (NASDAQ:TPGI) undervalued? Prominent investors are taking a bullish view. The number of long hedge fund positions improved by 1 lately.

In the financial world, there are dozens of methods shareholders can use to track stocks. Two of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can trounce the S&P 500 by a superb margin (see just how much).

Thomas Properties Group, Inc. (NASDAQ:TPGI)

Just as beneficial, optimistic insider trading activity is another way to break down the world of equities. Just as you’d expect, there are many stimuli for an executive to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this tactic if investors know where to look (learn more here).

Now, it’s important to take a gander at the key action encompassing Thomas Properties Group, Inc. (NASDAQ:TPGI).

How have hedgies been trading Thomas Properties Group, Inc. (NASDAQ:TPGI)?

Heading into 2013, a total of 6 of the hedge funds we track were bullish in this stock, a change of 20% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly.

When looking at the hedgies we track, Martin Whitman’s Third Avenue Management had the most valuable position in Thomas Properties Group, Inc. (NASDAQ:TPGI), worth close to $41.4 million, accounting for 0.9% of its total 13F portfolio. Sitting at the No. 2 spot is JHL Capital Group, managed by James H. Litinsky, which held a $4.1 million position; 0.6% of its 13F portfolio is allocated to the company. Some other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, J. Alan Reid, Jr.’s Forward Management and Geoffrey Raynor’s Q Investments (Specter Holdings).

Now, key money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, established the largest position in Thomas Properties Group, Inc. (NASDAQ:TPGI). Citadel Investment Group had 0.1 million invested in the company at the end of the quarter.

How have insiders been trading Thomas Properties Group, Inc. (NASDAQ:TPGI)?

Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Thomas Properties Group, Inc. (NASDAQ:TPGI) has seen 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Thomas Properties Group, Inc. (NASDAQ:TPGI). These stocks are Homex Development Corp. (ADR) (NYSE:HXM), Agree Realty Corporation (NYSE:ADC), AmREIT Inc (NYSE:AMRE), and Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND). This group of stocks are the members of the property management industry and their market caps are closest to TPGI’s market cap.