Is Post Properties Inc (NYSE:PPS) worth your attention right now? The smart money is taking a bullish view. The number of long hedge fund bets rose by 1 lately.
In today’s marketplace, there are tons of gauges investors can use to watch the equity markets. A pair of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can beat the broader indices by a very impressive margin (see just how much).
Just as important, optimistic insider trading activity is a second way to break down the world of equities. As the old adage goes: there are many reasons for an upper level exec to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this tactic if piggybackers know where to look (learn more here).
With all of this in mind, it’s important to take a glance at the latest action encompassing Post Properties Inc (NYSE:PPS).
Hedge fund activity in Post Properties Inc (NYSE:PPS)
At the end of the first quarter, a total of 13 of the hedge funds we track held long positions in this stock, a change of 8% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.
According to our comprehensive database, Carlson Capital, managed by Clint Carlson, holds the biggest position in Post Properties Inc (NYSE:PPS). Carlson Capital has a $59.6 million position in the stock, comprising 0.8% of its 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $54.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include John Khoury’s Long Pond Capital, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
As one would reasonably expect, key hedge funds were leading the bulls’ herd. Bryn Mawr Capital, managed by Ken Gray and Steve Walsh, established the most valuable position in Post Properties Inc (NYSE:PPS). Bryn Mawr Capital had 3.3 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $0.4 million investment in the stock during the quarter. The only other fund with a brand new PPS position is Thomas Bailard’s Bailard Inc.
How have insiders been trading Post Properties Inc (NYSE:PPS)?
Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time frame, Post Properties Inc (NYSE:PPS) has seen zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Post Properties Inc (NYSE:PPS). These stocks are CYS Investments Inc (NYSE:CYS), Equity Lifestyle Properties, Inc. (NYSE:ELS), Mid America Apartment Communities Inc (NYSE:MAA), Hatteras Financial Corp. (NYSE:HTS), and ARMOUR Residential REIT, Inc. (NYSE:ARR). All of these stocks are in the reit – residential industry and their market caps match PPS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| CYS Investments Inc (NYSE:CYS) | 13 | 2 | 1 |
| Equity Lifestyle Properties, Inc. (NYSE:ELS) | 12 | 0 | 5 |
| Mid America Apartment Communities Inc (NYSE:MAA) | 7 | 0 | 0 |
| Hatteras Financial Corp. (NYSE:HTS) | 6 | 0 | 0 |
| ARMOUR Residential REIT, Inc. (NYSE:ARR) | 11 | 3 | 0 |
With the results shown by our tactics, retail investors should always pay attention to hedge fund and insider trading activity, and Post Properties Inc (NYSE:PPS) shareholders fit into this picture quite nicely.
