Kennedy-Wilson Holdings Inc (NYSE:KW) was in 7 hedge funds’ portfolio at the end of the fourth quarter of 2012. KW investors should be aware of a decrease in hedge fund sentiment recently. There were 7 hedge funds in our database with KW holdings at the end of the previous quarter.
In the eyes of most stock holders, hedge funds are seen as slow, old financial vehicles of the past. While there are more than 8000 funds trading today, we look at the masters of this club, close to 450 funds. Most estimates calculate that this group has its hands on most of the smart money’s total capital, and by watching their best investments, we have deciphered a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).
Just as beneficial, bullish insider trading activity is a second way to break down the investments you’re interested in. Obviously, there are many motivations for an executive to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know what to do (learn more here).
Consequently, we’re going to take a gander at the latest action regarding Kennedy-Wilson Holdings Inc (NYSE:KW).
What does the smart money think about Kennedy-Wilson Holdings Inc (NYSE:KW)?
In preparation for this year, a total of 7 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, Chuck Royce’s Royce & Associates had the biggest position in Kennedy-Wilson Holdings Inc (NYSE:KW), worth close to $65.4 million, comprising 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is ACK Asset Management, managed by “Richard S. Meisenberg, which held a $6.8 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Prem Watsa’s Fairfax Financial Holdings, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
Because Kennedy-Wilson Holdings Inc (NYSE:KW) has experienced declining sentiment from the aggregate hedge fund industry, we can see that there were a few hedge funds who were dropping their entire stakes heading into 2013. Interestingly, Mike Vranos’s Ellington dropped the largest investment of the “upper crust” of funds we monitor, comprising close to $0.3 million in stock. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Kennedy-Wilson Holdings Inc (NYSE:KW)?
Insider trading activity, especially when it’s bullish, is best served when the company in question has seen transactions within the past 180 days. Over the last six-month time frame, Kennedy-Wilson Holdings Inc (NYSE:KW) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Kennedy-Wilson Holdings Inc (NYSE:KW). These stocks are Tejon Ranch Company (NYSE:TRC), DuPont Fabros Technology, Inc. (NYSE:DFT), Acadia Realty Trust (NYSE:AKR), Rouse Properties Inc (NYSE:RSE), and FirstService Corporation (USA) (NASDAQ:FSRV). All of these stocks are in the property management industry and their market caps match KW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Tejon Ranch Company (NYSE:TRC) | 8 | 1 | 1 |
| DuPont Fabros Technology, Inc. (NYSE:DFT) | 6 | 0 | 2 |
| Acadia Realty Trust (NYSE:AKR) | 5 | 0 | 6 |
| Rouse Properties Inc (NYSE:RSE) | 7 | 3 | 0 |
| FirstService Corporation (USA) (NASDAQ:FSRV) | 3 | 0 | 0 |
With the returns exhibited by Insider Monkey’s research, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Kennedy-Wilson Holdings Inc (NYSE:KW) is no exception.
