As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds’ thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Extra Space Storage, Inc. (NYSE:EXR).
Extra Space Storage, Inc. (NYSE:EXR) investors should pay attention to an increase in support from the world’s most elite money managers recently. Extra Space Storage, Inc. (NYSE:EXR) was in 27 hedge funds’ portfolios at the end of September. The all time high for this statistic is 30. There were 21 hedge funds in our database with EXR holdings at the end of June. Our calculations also showed that EXR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind we’re going to go over the key hedge fund action regarding Extra Space Storage, Inc. (NYSE:EXR).
Donald Sussman of Paloma Partners
Do Hedge Funds Think EXR Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 29% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards EXR over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Extra Space Storage, Inc. (NYSE:EXR) was held by Millennium Management, which reported holding $116.2 million worth of stock at the end of September. It was followed by GLG Partners with a $70.3 million position. Other investors bullish on the company included Renaissance Technologies, Citadel Investment Group, and Adage Capital Management. In terms of the portfolio weights assigned to each position Capital Growth Management allocated the biggest weight to Extra Space Storage, Inc. (NYSE:EXR), around 2.16% of its 13F portfolio. Navellier & Associates is also relatively very bullish on the stock, designating 0.78 percent of its 13F equity portfolio to EXR.
As industrywide interest jumped, key money managers have been driving this bullishness. Tudor Investment Corp, managed by Paul Tudor Jones, initiated the most valuable position in Extra Space Storage, Inc. (NYSE:EXR). Tudor Investment Corp had $14.8 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also initiated a $4.3 million position during the quarter. The other funds with brand new EXR positions are Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management, Donald Sussman’s Paloma Partners, and Bruce Kovner’s Caxton Associates LP.
Let’s now review hedge fund activity in other stocks similar to Extra Space Storage, Inc. (NYSE:EXR). We will take a look at Northern Trust Corporation (NASDAQ:NTRS), XP Inc. (NASDAQ:XP), Vulcan Materials Company (NYSE:VMC), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Dover Corporation (NYSE:DOV), Zillow Group Inc (NASDAQ:Z), and Monolithic Power Systems, Inc. (NASDAQ:MPWR). This group of stocks’ market values are similar to EXR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NTRS | 34 | 535076 | 2 |
| XP | 28 | 674196 | 3 |
| VMC | 43 | 1923351 | 0 |
| ALNY | 40 | 1030395 | 7 |
| DOV | 32 | 351286 | 3 |
| Z | 67 | 4251493 | -9 |
| MPWR | 28 | 799034 | -6 |
| Average | 38.9 | 1366404 | 0 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.9 hedge funds with bullish positions and the average amount invested in these stocks was $1366 million. That figure was $405 million in EXR’s case. Zillow Group Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand XP Inc. (NASDAQ:XP) is the least popular one with only 28 bullish hedge fund positions. Compared to these stocks Extra Space Storage, Inc. (NYSE:EXR) is even less popular than XP. Our overall hedge fund sentiment score for EXR is 37. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Hedge funds clearly dropped the ball on EXR as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. A small number of hedge funds were also right about betting on EXR as the stock returned 22.3% since Q3 (through December 9th) and outperformed the market by an even larger margin.
Follow Extra Space Storage Inc. (NYSE:EXR)
Follow Extra Space Storage Inc. (NYSE:EXR)
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Disclosure: None. This article was originally published at Insider Monkey.
