Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Prologis Inc (NYSE:PLD)?
Prologis Inc (NYSE:PLD) shareholders have witnessed a decrease in support from the world’s most elite money managers recently. PLD was in 17 hedge funds’ portfolios at the end of September. There were 28 hedge funds in our database with PLD holdings at the end of the previous quarter. At the end of this article we will also compare PLD to other stocks, including ARM Holdings plc (ADR) (NASDAQ:ARMH), Fiserv, Inc. (NASDAQ:FISV), and Aviva Plc (ADR) (NYSE:AV) to get a better sense of its popularity.
Follow Prologis Inc. (NYSE:PLD)
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In the financial world, there are tons of tools market participants use to grade publicly traded companies. A couple of the most innovative tools are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass the broader indices by a solid amount (see the details here).
Now, let’s go over the fresh action regarding Prologis Inc (NYSE:PLD).
How have hedgies been trading Prologis Inc (NYSE:PLD)?
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of -39% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, AEW Capital Management, managed by Jeffrey Furber, holds the most valuable position in Prologis Inc (NYSE:PLD). AEW Capital Management has a $229.1 million position in the stock, comprising 5.4% of its 13F portfolio. Coming in second is D E Shaw, which holds a $34.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism consist of Phill Gross and Robert Atchinson’s Adage Capital Management, David Harding’s Winton Capital Management and Cliff Asness’ AQR Capital Management.
Seeing as Prologis Inc (NYSE:PLD) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies who were dropping their entire stakes heading into Q4. Interestingly, Israel Englander’s Millennium Management dropped the biggest position of the 700 funds followed by Insider Monkey, comprising close to $38.7 million in stock. Renaissance Technologies, also cut its stock, about $31.9 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 11 funds heading into Q4.
Let’s now review hedge fund activity in other stocks similar to Prologis Inc (NYSE:PLD). We will take a look at ARM Holdings plc (ADR) (NASDAQ:ARMH), Fiserv, Inc. (NASDAQ:FISV), Aviva Plc (ADR) (NYSE:AV), and NXP Semiconductors NV (NASDAQ:NXPI). All of these stocks’ market caps are similar to PLD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ARMH | 17 | 243693 | -4 |
| FISV | 21 | 360513 | -1 |
| AV | 7 | 3969 | -1 |
| NXPI | 59 | 3188631 | -10 |
As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $949 million. That figure was $403 million in PLD’s case. NXP Semiconductors NV (NASDAQ:NXPI) is the most popular stock in this table and Aviva Plc (ADR) (NYSE:AV) is the least popular one with only 7 bullish hedge fund positions. Prologis Inc (NYSE:PLD) 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 NXPI might be a better candidate to consider a long position.
