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 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 30th, 2021. What do these smart investors think about Camden Property Trust (NYSE:CPT)?
Camden Property Trust (NYSE:CPT) shareholders have witnessed a decrease in support from the world’s most elite money managers recently. Camden Property Trust (NYSE:CPT) was in 21 hedge funds’ portfolios at the end of June. The all time high for this statistic is 32. There were 24 hedge funds in our database with CPT positions at the end of the first quarter. Our calculations also showed that CPT isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Phillip Gross of Adage Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s take a look at the key hedge fund action surrounding Camden Property Trust (NYSE:CPT).
Do Hedge Funds Think CPT Is A Good Stock To Buy Now?
At Q2’s end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CPT over the last 24 quarters. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, John Khoury’s Long Pond Capital has the most valuable position in Camden Property Trust (NYSE:CPT), worth close to $115.2 million, comprising 4% of its total 13F portfolio. On Long Pond Capital’s heels is V3 Capital, led by Charles Fitzgerald, holding a $84.9 million position; 14.4% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co, Eduardo Abush’s Waterfront Capital Partners and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position V3 Capital allocated the biggest weight to Camden Property Trust (NYSE:CPT), around 14.37% of its 13F portfolio. Waterfront Capital Partners is also relatively very bullish on the stock, setting aside 4.37 percent of its 13F equity portfolio to CPT.
Since Camden Property Trust (NYSE:CPT) has witnessed a decline in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of funds who sold off their full holdings heading into Q3. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest investment of the 750 funds watched by Insider Monkey, comprising about $51.7 million in stock. Renaissance Technologies, also dumped its stock, about $8.4 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 3 funds heading into Q3.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Camden Property Trust (NYSE:CPT) but similarly valued. These stocks are Athene Holding Ltd. (NYSE:ATH), Tenaris S.A. (NYSE:TS), Packaging Corporation Of America (NYSE:PKG), Graco Inc. (NYSE:GGG), DaVita Inc (NYSE:DVA), Interpublic Group of Companies Inc (NYSE:IPG), and Nordson Corporation (NASDAQ:NDSN). This group of stocks’ market caps match CPT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ATH | 43 | 1645361 | -1 |
| TS | 14 | 267623 | 4 |
| PKG | 31 | 444749 | 2 |
| GGG | 24 | 255419 | -1 |
| DVA | 39 | 5131921 | 5 |
| IPG | 31 | 647813 | 2 |
| NDSN | 34 | 311616 | 8 |
| Average | 30.9 | 1243500 | 2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.9 hedge funds with bullish positions and the average amount invested in these stocks was $1244 million. That figure was $441 million in CPT’s case. Athene Holding Ltd. (NYSE:ATH) is the most popular stock in this table. On the other hand Tenaris S.A. (NYSE:TS) is the least popular one with only 14 bullish hedge fund positions. Camden Property Trust (NYSE:CPT) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CPT is 33.8. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on CPT as the stock returned 20.6% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.
Follow Camden Property Trust (NYSE:CPT)
Follow Camden Property Trust (NYSE:CPT)
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Disclosure: None. This article was originally published at Insider Monkey.
