Is Hudson Pacific Properties Inc (NYSE:HPP) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Hudson Pacific Properties Inc (NYSE:HPP) shareholders have witnessed an increase in support from the world’s most elite money managers recently. HPP was in 24 hedge funds’ portfolios at the end of September. There were 17 hedge funds in our database with HPP holdings at the end of the previous quarter. Our calculations also showed that HPP isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Israel Englander of Millennium Management
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. We’re going to take a peek at the new hedge fund action encompassing Hudson Pacific Properties Inc (NYSE:HPP).
How are hedge funds trading Hudson Pacific Properties Inc (NYSE:HPP)?
Heading into the fourth quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 41% from the second quarter of 2019. Below, you can check out the change in hedge fund sentiment towards HPP over the last 17 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Long Pond Capital, managed by John Khoury, holds the number one position in Hudson Pacific Properties Inc (NYSE:HPP). Long Pond Capital has a $89.7 million position in the stock, comprising 2.3% of its 13F portfolio. Coming in second is Renaissance Technologies, with a $65.2 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers with similar optimism contain Eduardo Abush’s Waterfront Capital Partners, Israel Englander’s Millennium Management and Anand Parekh’s Alyeska Investment Group. In terms of the portfolio weights assigned to each position Waterfront Capital Partners allocated the biggest weight to Hudson Pacific Properties Inc (NYSE:HPP), around 4.84% of its portfolio. Long Pond Capital is also relatively very bullish on the stock, setting aside 2.34 percent of its 13F equity portfolio to HPP.
As one would reasonably expect, specific money managers were breaking ground themselves. Marshall Wace, managed by Paul Marshall and Ian Wace, assembled the most outsized position in Hudson Pacific Properties Inc (NYSE:HPP). Marshall Wace had $4.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $4 million position during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, David Harding’s Winton Capital Management, and Perella Weinberg Partners.
Let’s also examine hedge fund activity in other stocks similar to Hudson Pacific Properties Inc (NYSE:HPP). We will take a look at HUYA Inc. (NYSE:HUYA), Clarivate Analytics Plc (NYSE:CCC), Companhia Brasileira de Distribuicao (NYSE:CBD), and Integra Lifesciences Holdings Corporation (NASDAQ:IART). All of these stocks’ market caps resemble HPP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HUYA | 21 | 361903 | -1 |
| CCC | 38 | 686023 | 17 |
| CBD | 11 | 44794 | 0 |
| IART | 21 | 216426 | 0 |
| Average | 22.75 | 327287 | 4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $327 million. That figure was $260 million in HPP’s case. Clarivate Analytics Plc (NYSE:CCC) is the most popular stock in this table. On the other hand Companhia Brasileira de Distribuicao (NYSE:CBD) is the least popular one with only 11 bullish hedge fund positions. Hudson Pacific Properties Inc (NYSE:HPP) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Hedge funds were also right about betting on HPP, though not to the same extent, as the stock returned 7% during the first two months of the fourth quarter and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.
