Is Douglas Emmett, Inc. (DEI) Going to Burn These Hedge Funds?
At the moment, there are tons of indicators market participants can use to analyze their holdings. Two of the most innovative 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 best money managers can outperform the S&P 500 by a solid margin (see just how much).
Equally as key, positive insider trading activity is a second way to analyze the stock market universe. Just as you'd expect, there are lots of incentives for an executive to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).
Keeping this in mind, it's important to examine the latest info about Douglas Emmett, Inc. (NYSE:DEI).
What does the smart money think about Douglas Emmett, Inc. (NYSE:DEI)?
At Q2's end, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from the first quarter. With hedge funds' capital changing hands, there exists an "upper tier" of notable hedge fund managers who were boosting their stakes substantially.
When using filings from the hedgies we track, AEW Capital Management, managed by Jeffrey Furber, holds the most valuable position in Douglas Emmett, Inc. (NYSE:DEI). AEW Capital Management has a $14 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Elm Ridge Capital, managed by Ron Gutfleish, which held a $7.6 million position; 0.9% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Ken Griffin's Citadel Investment Group, Cliff Asness's AQR Capital Management and Robert B. Gillam's McKinley Capital Management.
Since Douglas Emmett, Inc. (NYSE:DEI) has experienced dropping sentiment from the entirety of the hedge funds we track, it's easy to see that there were a few money managers that decided to sell off their positions entirely heading into Q2. At the top of the heap, Jim Simons's Renaissance Technologies sold off the biggest investment of the "upper crust" of funds we key on, worth an estimated $4.9 million in stock, and Israel Englander of Millennium Management was right behind this move, as the fund dumped about $1 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 1 funds heading into Q2.
What do corporate executives and insiders think about Douglas Emmett, Inc. (NYSE:DEI)?
Legal insider trading, particularly when it's bullish, is most useful when the primary stock in question has seen transactions within the past six months. Over the last 180-day time period, Douglas Emmett, Inc. (NYSE:DEI) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Douglas Emmett, Inc. (NYSE:DEI). These stocks are National Retail Properties, Inc. (NYSE:NNN), Chimera Investment Corporation (NYSE:CIM), MFA Financial, Inc. (NYSE:MFA), Starwood Property Trust, Inc. (NYSE:STWD), and Retail Properties of America Inc (NYSE:RPAI). All of these stocks are in the reit - diversified industry and their market caps resemble DEI's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
National Retail Properties, Inc. (NYSE:NNN)
Chimera Investment Corporation (NYSE:CIM)
MFA Financial, Inc. (NYSE:MFA)
Starwood Property Trust, Inc. (NYSE:STWD)
Retail Properties of America Inc (NYSE:RPAI)
Using the results demonstrated by the previously mentioned research, regular investors must always track hedge fund and insider trading activity, and Douglas Emmett, Inc. (NYSE:DEI) applies perfectly to this mantra.
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