Taubman Centers, Inc. (NYSE:TCO): Are Hedge Funds Right About This Stock?

Taubman Centers, Inc. (NYSE:TCO) was in 14 hedge funds’ portfolio at the end of December. TCO investors should be aware of a decrease in enthusiasm from smart money lately. There were 16 hedge funds in our database with TCO holdings at the end of the previous quarter.

At the moment, there are plenty of methods market participants can use to track Mr. Market. A couple of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outpace the S&P 500 by a superb margin (see just how much).

Just as integral, positive insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are plenty of stimuli for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this tactic if “monkeys” know where to look (learn more here).

Consequently, it’s important to take a peek at the latest action encompassing Taubman Centers, Inc. (NYSE:TCO).

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

In preparation for this year, a total of 14 of the hedge funds we track were bullish in this stock, a change of -13% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

When looking at the hedgies we track, Capital Growth Management, managed by Ken Heebner, holds the largest position in Taubman Centers, Inc. (NYSE:TCO). Capital Growth Management has a $79 million position in the stock, comprising 2.1% of its 13F portfolio. On Capital Growth Management’s heels is D. E. Shaw of D E Shaw, with a $75 million position; 0% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Ken Griffin’s Citadel Investment Group, John Overdeck and David Siegel’s Two Sigma Advisors and Israel Englander’s Millennium Management.

Seeing as Taubman Centers, Inc. (NYSE:TCO) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of funds who were dropping their full holdings heading into 2013. At the top of the heap, SAC Subsidiary’s Sigma Capital Management dropped the largest position of the “upper crust” of funds we track, totaling an estimated $12 million in stock.. David Costen Haley’s fund, HBK Investments, also said goodbye to its stock, about $2 million worth. These moves are important to note, as total hedge fund interest dropped by 2 funds heading into 2013.

What do corporate executives and insiders think about Taubman Centers, Inc. (NYSE:TCO)?

Insider buying is best served when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, Taubman Centers, Inc. (NYSE:TCO) has experienced 2 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Taubman Centers, Inc. (NYSE:TCO). These stocks are Regency Centers Corp (NYSE:REG), DDR Corp (NYSE:DDR), Weingarten Realty Investors (NYSE:WRI), CBL & Associates Properties, Inc. (NYSE:CBL), and Hospitality Properties Trust (NYSE:HPT). All of these stocks are in the reit – retail industry and their market caps resemble TCO’s market cap.

With the results exhibited by Insider Monkey’s tactics, retail investors should always watch hedge fund and insider trading sentiment, and Taubman Centers, Inc. (NYSE:TCO) is no exception.

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