Hedge Funds Are Dumping Kilroy Realty Corp (KRC)

Kilroy Realty Corp (NYSE:KRC) investors should be aware of a decrease in support from the world’s most elite money managers of late.

At the moment, there are tons of metrics shareholders can use to monitor their holdings. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can trounce their index-focused peers by a solid margin (see just how much).

Just as key, positive insider trading sentiment is another way to break down the stock market universe. Obviously, there are a variety of motivations for an executive to cut shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).

Now, it’s important to take a peek at the latest action surrounding Kilroy Realty Corp (NYSE:KRC).

How have hedgies been trading Kilroy Realty Corp (NYSE:KRC)?

In preparation for this quarter, a total of 9 of the hedge funds we track were bullish in this stock, a change of -10% from the first quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably.

Of the funds we track, AEW Capital Management, managed by Jeffrey Furber, holds the biggest position in Kilroy Realty Corp (NYSE:KRC). AEW Capital Management has a $112.3 million position in the stock, comprising 2.8% of its 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with a $13 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Dmitry Balyasny’s Balyasny Asset Management, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.

Judging by the fact that Kilroy Realty Corp (NYSE:KRC) has experienced bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of money managers that decided to sell off their full holdings last quarter. At the top of the heap, Matthew Tewksbury’s Stevens Capital Management cut the largest stake of the 450+ funds we monitor, worth about $9 million in stock., and Malcolm Fairbairn of Ascend Capital was right behind this move, as the fund cut about $3.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 funds last quarter.

Insider trading activity in Kilroy Realty Corp (NYSE:KRC)

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Kilroy Realty Corp (NYSE:KRC) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the returns exhibited by Insider Monkey’s strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Kilroy Realty Corp (NYSE:KRC) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds