The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards National Retail Properties, Inc. (NYSE:NNN).
Is National Retail Properties, Inc. (NNN) a good stock to buy now? The best stock pickers were turning bullish. The number of bullish hedge fund bets advanced by 2 recently. National Retail Properties, Inc. (NYSE:NNN) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 23. Our calculations also showed that NNN isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Clint Carlson of Carlson Capital
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. Now we’re going to view the key hedge fund action surrounding National Retail Properties, Inc. (NYSE:NNN).
Do Hedge Funds Think NNN Is A Good Stock To Buy Now?
At third quarter’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 11% from the second quarter of 2021. By comparison, 16 hedge funds held shares or bullish call options in NNN a year ago. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).
The largest stake in National Retail Properties, Inc. (NYSE:NNN) was held by Millennium Management, which reported holding $37.3 million worth of stock at the end of September. It was followed by AQR Capital Management with a $17.4 million position. Other investors bullish on the company included D E Shaw, Renaissance Technologies, and Carlson Capital. In terms of the portfolio weights assigned to each position Hill Winds Capital allocated the biggest weight to National Retail Properties, Inc. (NYSE:NNN), around 0.71% of its 13F portfolio. Carlson Capital is also relatively very bullish on the stock, dishing out 0.51 percent of its 13F equity portfolio to NNN.
As industrywide interest jumped, key money managers were leading the bulls’ herd. Engineers Gate Manager, managed by Greg Eisner, established the largest position in National Retail Properties, Inc. (NYSE:NNN). Engineers Gate Manager had $0.6 million invested in the company at the end of the quarter. Jinghua Yan’s TwinBeech Capital also made a $0.6 million investment in the stock during the quarter. The other funds with brand new NNN positions are Alec Litowitz and Ross Laser’s Magnetar Capital and Peter Algert’s Algert Global.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as National Retail Properties, Inc. (NYSE:NNN) but similarly valued. These stocks are Endava plc (NYSE:DAVA), Reinsurance Group of America Inc (NYSE:RGA), Cullen/Frost Bankers, Inc. (NYSE:CFR), Vipshop Holdings Limited (NYSE:VIPS), Tandem Diabetes Care Inc (NASDAQ:TNDM), Education Realty Trust, Inc. (NYSE:EDR), and BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). This group of stocks’ market valuations match NNN’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DAVA | 16 | 282010 | 0 |
| RGA | 32 | 452166 | 4 |
| CFR | 13 | 92869 | 0 |
| VIPS | 30 | 560211 | -6 |
| TNDM | 31 | 287129 | -1 |
| EDR | 20 | 3930122 | 20 |
| BJ | 24 | 129524 | 7 |
| Average | 23.7 | 819147 | 3.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.7 hedge funds with bullish positions and the average amount invested in these stocks was $819 million. That figure was $120 million in NNN’s case. Reinsurance Group of America Inc (NYSE:RGA) is the most popular stock in this table. On the other hand Cullen/Frost Bankers, Inc. (NYSE:CFR) is the least popular one with only 13 bullish hedge fund positions. National Retail Properties, Inc. (NYSE:NNN) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for NNN is 55.4. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. A small number of hedge funds were also right about betting on NNN as the stock returned 12.6% since the end of the third quarter (through 12/31) and outperformed the market by an even larger margin.
Follow Nnn Reit Inc. (NYSE:NNN)
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Disclosure: None. This article was originally published at Insider Monkey.
