Mack Cali Realty Corp (NYSE:CLI) investors should be aware of a decrease in support from the world’s most elite money managers lately.
To the average investor, there are plenty of metrics investors can use to track their holdings. Some of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform the S&P 500 by a healthy margin (see just how much).
Equally as integral, optimistic insider trading sentiment is another way to break down the financial markets. There are many motivations for a bullish insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this strategy if shareholders understand where to look (learn more here).
With all of this in mind, let’s take a peek at the recent action regarding Mack Cali Realty Corp (NYSE:CLI).
How have hedgies been trading Mack Cali Realty Corp (NYSE:CLI)?
At the end of the first quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of -40% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings considerably.
When looking at the hedgies we track, Ken Fisher’s Fisher Asset Management had the largest position in Mack Cali Realty Corp (NYSE:CLI), worth close to $35.6 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $16.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Chuck Royce’s Royce & Associates, J. Alan Reid, Jr.’s Forward Management and David Dreman’s Dreman Value Management.
Because Mack Cali Realty Corp (NYSE:CLI) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there is a sect of hedgies who were dropping their full holdings at the end of the first quarter. Interestingly, Ken Gray and Steve Walsh’s Bryn Mawr Capital dumped the largest investment of the 450+ funds we watch, totaling about $4.7 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund cut about $4.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds at the end of the first quarter.
What have insiders been doing with Mack Cali Realty Corp (NYSE:CLI)?
Insider buying is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last six-month time period, Mack Cali Realty Corp (NYSE:CLI) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Mack Cali Realty Corp (NYSE:CLI). These stocks are Highwoods Properties Inc (NYSE:HIW), American Realty Capital Trust Inc (NASDAQ:ARCT), Corporate Office Properties Trust (NYSE:OFC), CommonWealth REIT (NYSE:CWH), and Brookfield Canada Office Properties (NYSE:BOXC). This group of stocks are in the reit – office industry and their market caps match CLI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Highwoods Properties Inc (NYSE:HIW) | 5 | 1 | 7 |
| American Realty Capital Trust Inc (NASDAQ:ARCT) | 23 | 0 | 0 |
| Corporate Office Properties Trust (NYSE:OFC) | 6 | 0 | 6 |
| CommonWealth REIT (NYSE:CWH) | 41 | 0 | 0 |
| Brookfield Canada Office Properties (NYSE:BOXC) | 2 | 0 | 0 |
With the returns shown by Insider Monkey’s research, everyday investors must always watch hedge fund and insider trading sentiment, and Mack Cali Realty Corp (NYSE:CLI) applies perfectly to this mantra.
