The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Franklin Street Properties Corp. (NYSEAMEX:FSP).
Franklin Street Properties Corp. (NYSEAMEX:FSP) was in 9 hedge funds’ portfolios at the end of the third quarter of 2016. FSP investors should pay attention to a decrease in hedge fund interest lately. There were 10 hedge funds in our database with FSP holdings at the end of the previous quarter. At the end of this article we will also compare FSP to other stocks including WesBanco, Inc. (NASDAQ:WSBC), Shake Shack Inc (NYSE:SHAK), and Stratasys, Ltd. (NASDAQ:SSYS) to get a better sense of its popularity.
Follow Franklin Street Properties Corp (NYSE:FSP)
Follow Franklin Street Properties Corp (NYSE:FSP)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
designer491/Shutterstock.com
Now, we’re going to take a look at the latest action surrounding Franklin Street Properties Corp. (NYSEAMEX:FSP).
How are hedge funds trading Franklin Street Properties Corp. (NYSEAMEX:FSP)?
At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -10% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in FSP over the last 5 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Forward Management, led by J. Alan Reid, Jr., holds the largest position in Franklin Street Properties Corp. (NYSEAMEX:FSP). Forward Management has a $39.1 million position in the stock, comprising 3% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, one of the largest hedge funds in the world, with a $19.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that are bullish include Cliff Asness’s AQR Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Ken Griffin’s Citadel Investment Group. We should note that Forward Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Since Franklin Street Properties Corp. (NYSEAMEX:FSP) has faced falling interest from hedge fund managers, we can see that there was a specific group of money managers who sold off their full holdings by the end of the third quarter. Intriguingly, D. E. Shaw’s D E Shaw said goodbye to the largest stake of all the hedgies tracked by Insider Monkey, comprising close to $0.4 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.1 million worth.
Let’s go over hedge fund activity in other stocks similar to Franklin Street Properties Corp. (NYSEAMEX:FSP). We will take a look at WesBanco, Inc. (NASDAQ:WSBC), Shake Shack Inc (NYSE:SHAK), Stratasys, Ltd. (NASDAQ:SSYS), and Cempra Inc (NASDAQ:CEMP). This group of stocks’ market caps are closest to FSP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WSBC | 7 | 16798 | 1 |
| SHAK | 11 | 85967 | -3 |
| SSYS | 18 | 143762 | 6 |
| CEMP | 15 | 164527 | 1 |
As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $103 million. That figure was $66 million in FSP’s case. Stratasys, Ltd. (NASDAQ:SSYS) is the most popular stock in this table. On the other hand WesBanco, Inc. (NASDAQ:WSBC) is the least popular one with only 7 bullish hedge fund positions. Franklin Street Properties Corp. (NYSEAMEX:FSP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SSYS might be a better candidate to consider taking a long position in.
