Hedge Funds Are Piling Into Rexford Industrial Realty Inc (REXR)

The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th. We at Insider Monkey have made an extensive database of more than 867 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Rexford Industrial Realty Inc (NYSE:REXR) based on those filings.

Rexford Industrial Realty Inc (NYSE:REXR) investors should be aware of an increase in support from the world’s most elite money managers lately. Rexford Industrial Realty Inc (NYSE:REXR) was in 29 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 24. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that REXR 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 let’s analyze the recent hedge fund action encompassing Rexford Industrial Realty Inc (NYSE:REXR).

Jeffrey Talpins of Element Capital

Do Hedge Funds Think REXR Is A Good Stock To Buy Now?

At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 38% from the previous quarter. By comparison, 12 hedge funds held shares or bullish call options in REXR a year ago. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Israel Englander’s Millennium Management has the largest position in Rexford Industrial Realty Inc (NYSE:REXR), worth close to $63 million, amounting to less than 0.1%% of its total 13F portfolio. The second largest stake is held by Waterfront Capital Partners, managed by Eduardo Abush, which holds a $40.8 million position; 2.9% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish consist of Dmitry Balyasny’s Balyasny Asset Management, Greg Poole’s Echo Street Capital Management and Renaissance Technologies. In terms of the portfolio weights assigned to each position Element Capital Management allocated the biggest weight to Rexford Industrial Realty Inc (NYSE:REXR), around 5.24% of its 13F portfolio. Hill Winds Capital is also relatively very bullish on the stock, designating 2.94 percent of its 13F equity portfolio to REXR.

As aggregate interest increased, key money managers have jumped into Rexford Industrial Realty Inc (NYSE:REXR) headfirst. Waterfront Capital Partners, managed by Eduardo Abush, established the biggest position in Rexford Industrial Realty Inc (NYSE:REXR). Waterfront Capital Partners had $40.8 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $15.9 million position during the quarter. The other funds with new positions in the stock are Jeffrey Talpins’s Element Capital Management, Clint Carlson’s Carlson Capital, and David Costen Haley’s HBK Investments.

Let’s check out hedge fund activity in other stocks similar to Rexford Industrial Realty Inc (NYSE:REXR). We will take a look at Phillips 66 Partners LP (NYSE:PSXP), The Scotts Miracle-Gro Company (NYSE:SMG), Ralph Lauren Corporation (NYSE:RL), Pinnacle West Capital Corporation (NYSE:PNW), Arrival (NASDAQ:ARVL), Commerce Bancshares, Inc. (NASDAQ:CBSH), and APA Corporation (NASDAQ:APA). All of these stocks’ market caps are closest to REXR’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 19.1 hedge funds with bullish positions and the average amount invested in these stocks was $212 million. That figure was $358 million in REXR’s case. APA Corporation (NASDAQ:APA) is the most popular stock in this table. On the other hand Arrival (NASDAQ:ARVL) is the least popular one with only 4 bullish hedge fund positions. Rexford Industrial Realty Inc (NYSE:REXR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for REXR is 83.1. 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. 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 still beat the market by 5.6 percentage points. Hedge funds were also right about betting on REXR as the stock returned 23.5% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.