The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. What do these smart investors think about Boston Properties, Inc. (NYSE:BXP)?
Is Boston Properties, Inc. (NYSE:BXP) the right pick for your portfolio? Money managers were becoming more confident. The number of long hedge fund bets moved up by 2 recently. Boston Properties, Inc. (NYSE:BXP) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 36. Our calculations also showed that BXP isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 19 hedge funds in our database with BXP positions at the end of the second quarter.
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. With all of this in mind let’s take a glance at the latest hedge fund action regarding Boston Properties, Inc. (NYSE:BXP).
Phillip Gross of Adage Capital
Do Hedge Funds Think BXP Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from the second quarter of 2021. On the other hand, there were a total of 26 hedge funds with a bullish position in BXP a year ago. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
The largest stake in Boston Properties, Inc. (NYSE:BXP) was held by TCI Fund Management, which reported holding $1407.3 million worth of stock at the end of September. It was followed by Adage Capital Management with a $18.1 million position. Other investors bullish on the company included Hill Winds Capital, Renaissance Technologies, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Hill Winds Capital allocated the biggest weight to Boston Properties, Inc. (NYSE:BXP), around 4.8% of its 13F portfolio. TCI Fund Management is also relatively very bullish on the stock, designating 3.38 percent of its 13F equity portfolio to BXP.
Consequently, key hedge funds were breaking ground themselves. Renaissance Technologies, established the largest position in Boston Properties, Inc. (NYSE:BXP). Renaissance Technologies had $7.1 million invested in the company at the end of the quarter. Greg Poole’s Echo Street Capital Management also initiated a $1.6 million position during the quarter. The following funds were also among the new BXP investors: Brandon Haley’s Holocene Advisors, Paul Tudor Jones’s Tudor Investment Corp, and Mika Toikka’s AlphaCrest Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Boston Properties, Inc. (NYSE:BXP) but similarly valued. These stocks are ASE Technology Holding Co., Ltd. (NYSE:ASX), The Carlyle Group Inc (NASDAQ:CG), Ceridian HCM Holding Inc. (NYSE:CDAY), Celanese Corporation (NYSE:CE), Bath & Body Works Inc. (NYSE:BBWI), Full Truck Alliance Co. Ltd. (NYSE:YMM), and Brookfield Infrastructure Partners L.P. (NYSE:BIP). This group of stocks’ market caps are closest to BXP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ASX | 10 | 271536 | 3 |
| CG | 34 | 1401572 | 13 |
| CDAY | 20 | 1798355 | -5 |
| CE | 26 | 735190 | -11 |
| BBWI | 56 | 6556642 | 3 |
| YMM | 13 | 263866 | 13 |
| BIP | 15 | 104470 | -1 |
| Average | 24.9 | 1590233 | 2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.9 hedge funds with bullish positions and the average amount invested in these stocks was $1590 million. That figure was $1471 million in BXP’s case. Bath & Body Works Inc. (NYSE:BBWI) is the most popular stock in this table. On the other hand ASE Technology Holding Co., Ltd. (NYSE:ASX) is the least popular one with only 10 bullish hedge fund positions. Boston Properties, Inc. (NYSE:BXP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BXP is 36.5. 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 negative signal and 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 29.6% in 2021 and surpassed the market again by 3.6 percentage points. Unfortunately BXP wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); BXP investors were disappointed as the stock returned 7.2% since the end of September (through 12/31) 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 most of these stocks already outperformed the market in 2021.
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Disclosure: None. This article was originally published at Insider Monkey.
