We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of CBRE Group, Inc. (NYSE:CBRE) based on that data.
Hedge fund interest in CBRE Group, Inc. (NYSE:CBRE) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that CBRE isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare CBRE to other stocks including Affirm Holdings, Inc. (NASDAQ:AFRM), Verisk Analytics, Inc. (NASDAQ:VRSK), and EPAM Systems Inc (NYSE:EPAM) to get a better sense of its popularity.
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 take a peek at the latest hedge fund action regarding CBRE Group, Inc. (NYSE:CBRE).
Ken Heebner of Capital Growth Management
Do Hedge Funds Think CBRE Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 37 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from one quarter earlier. By comparison, 24 hedge funds held shares or bullish call options in CBRE a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Jeffrey Ubben’s ValueAct Capital has the largest position in CBRE Group, Inc. (NYSE:CBRE), worth close to $898.9 million, amounting to 10.4% of its total 13F portfolio. Sitting at the No. 2 spot is David Blood and Al Gore of Generation Investment Management, with a $664.7 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Other peers with similar optimism consist of William von Mueffling’s Cantillon Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and John W. Rogers’s Ariel Investments. In terms of the portfolio weights assigned to each position ValueAct Capital allocated the biggest weight to CBRE Group, Inc. (NYSE:CBRE), around 10.41% of its 13F portfolio. Kerrisdale Capital is also relatively very bullish on the stock, earmarking 4.21 percent of its 13F equity portfolio to CBRE.
Judging by the fact that CBRE Group, Inc. (NYSE:CBRE) has experienced a decline in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of fund managers that slashed their positions entirely in the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group dropped the largest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $30.3 million in stock. Robert Pohly’s fund, Samlyn Capital, also sold off its stock, about $15.4 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as CBRE Group, Inc. (NYSE:CBRE) but similarly valued. We will take a look at Affirm Holdings, Inc. (NASDAQ:AFRM), Verisk Analytics, Inc. (NASDAQ:VRSK), EPAM Systems Inc (NYSE:EPAM), Nasdaq, Inc. (NASDAQ:NDAQ), Cummins Inc. (NYSE:CMI), Barrick Gold Corporation (NYSE:GOLD), and Rocket Companies, Inc. (NYSE:RKT). This group of stocks’ market caps are closest to CBRE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AFRM | 39 | 1491413 | 14 |
| VRSK | 25 | 1638278 | -11 |
| EPAM | 42 | 945738 | 9 |
| NDAQ | 21 | 257290 | -2 |
| CMI | 30 | 830044 | -15 |
| GOLD | 41 | 917695 | -6 |
| RKT | 17 | 100749 | 4 |
| Average | 30.7 | 883030 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.7 hedge funds with bullish positions and the average amount invested in these stocks was $883 million. That figure was $3097 million in CBRE’s case. EPAM Systems Inc (NYSE:EPAM) is the most popular stock in this table. On the other hand Rocket Companies, Inc. (NYSE:RKT) is the least popular one with only 17 bullish hedge fund positions. CBRE Group, Inc. (NYSE:CBRE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CBRE is 75. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately CBRE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CBRE were disappointed as the stock returned -1.8% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Cbre Group Inc. (NYSE:CBRE)
Follow Cbre Group Inc. (NYSE:CBRE)
Suggested Articles:
Disclosure: None. This article was originally published at Insider Monkey.
