Is Taubman Centers, Inc. (TCO) Going to Burn These Hedge Funds?

What’s a smart Taubman Centers, Inc. (NYSE:TCO) investor to do?

At the moment, there are tons of methods shareholders can use to watch stocks. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can beat the S&P 500 by a healthy amount (see just how much).

Equally as crucial, optimistic insider trading activity is another way to look at the investments you’re interested in. Obviously, there are many incentives for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this method if investors know what to do (learn more here).

Furthermore, it’s important to discuss the recent info about Taubman Centers, Inc. (NYSE:TCO).

How are hedge funds trading Taubman Centers, Inc. (NYSE:TCO)?

Heading into Q3, a total of 19 of the hedge funds we track held long positions in this stock, a change of 27% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably.

When using filings from the hedgies we track, D. E. Shaw’s D E Shaw had the biggest position in Taubman Centers, Inc. (NYSE:TCO), worth close to $71.8 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Capital Growth Management, managed by Ken Heebner, which held a $44.3 million position; 1.2% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group and Jim Simons’s Renaissance Technologies.

As one would understandably expect, certain money managers were breaking ground themselves. D E Shaw, managed by D. E. Shaw, initiated the most outsized position in Taubman Centers, Inc. (NYSE:TCO). D E Shaw had 71.8 million invested in the company at the end of the quarter. Ken Heebner’s Capital Growth Management also made a $44.3 million investment in the stock during the quarter. The other funds with brand new TCO positions are John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group, and Jim Simons’s Renaissance Technologies.

What have insiders been doing with Taubman Centers, Inc. (NYSE:TCO)?

Insider buying made by high-level executives is particularly usable when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time period, Taubman Centers, Inc. (NYSE:TCO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Taubman Centers, Inc. (NYSE:TCO). These stocks are Hospitality Properties Trust (NYSE:HPT), CBL & Associates Properties, Inc. (NYSE:CBL), Weingarten Realty Investors (NYSE:WRI), DDR Corp (NYSE:DDR), and Regency Centers Corp (NYSE:REG). This group of stocks are in the reit – retail industry and their market caps are similar to TCO’s market cap.

Using the results demonstrated by Insider Monkey’s tactics, regular investors must always pay attention to hedge fund and insider trading activity, and Taubman Centers, Inc. (NYSE:TCO) shareholders fit into this picture quite nicely.

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