Should Parkway Properties Inc (NYSE:PKY) investors track the following data?
In the eyes of many traders, hedge funds are perceived as useless, outdated investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds trading today, this site focuses on the moguls of this group, about 525 funds. It is widely held that this group has its hands on the lion’s share of the smart money’s total assets, and by tracking their best stock picks, we’ve uncovered a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as useful, positive insider trading sentiment is another way to analyze the stock market universe. Obviously, there are a variety of motivations for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this method if investors know what to do (learn more here).
Keeping this in mind, let’s examine the recent info for Parkway Properties Inc (NYSE:PKY).
What have hedge funds been doing with Parkway Properties Inc (NYSE:PKY)?
At Q2’s end, a total of 12 of the hedge funds we track held long positions in this stock, a change of 9% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly.
Out of the hedge funds we follow, J. Alan Reid, Jr.’s Forward Management had the biggest position in Parkway Properties Inc (NYSE:PKY), worth close to $7 million, accounting for 0.6% of its total 13F portfolio. The second largest stake is held by Robert Rodriguez and Steven Romick of First Pacific Advisors LLC, with a $4.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism include D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
Now, specific money managers were leading the bulls’ herd. Forward Management, managed by J. Alan Reid, Jr., created the most valuable position in Parkway Properties Inc (NYSE:PKY). Forward Management had 7 million invested in the company at the end of the quarter. Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC also initiated a $4.9 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies, and Israel Englander’s Millennium Management.
How have insiders been trading Parkway Properties Inc (NYSE:PKY)?
Insider buying made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest 180-day time period, Parkway Properties Inc (NYSE:PKY) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Parkway Properties Inc (NYSE:PKY). These stocks are Select Income REIT (NYSE:SIR), Government Properties Income Trust (NYSE:GOV), Franklin Street Properties Corp. (NYSEAMEX:FSP), Hudson Pacific Properties Inc (NYSE:HPP), and American Assets Trust, Inc (NYSE:AAT). All of these stocks are in the reit – office industry and their market caps match PKY’s market cap.
