The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. Hedge funds’ consensus stock picks performed spectacularly over the last 3 years, but 2022 hasn’t been kind to hedge funds. In this article we look at how hedge funds traded Public Storage (NYSE:PSA) and determine whether the smart money was really smart about this stock.
Public Storage (NYSE:PSA) was in 35 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 31. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. PSA has seen an increase in enthusiasm from smart money in recent months. There were 27 hedge funds in our database with PSA positions at the end of the second quarter. Our calculations also showed that PSA isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s take a peek at the recent hedge fund action surrounding Public Storage (NYSE:PSA).
Paul Singer of Elliott Management
Do Hedge Funds Think PSA Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 30% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards PSA over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Cliff Asness’s AQR Capital Management has the most valuable position in Public Storage (NYSE:PSA), worth close to $215.2 million, accounting for 0.4% of its total 13F portfolio. The second largest stake is held by Paul Singer of Elliott Investment Management, with a $170.8 million position; 1.2% of its 13F portfolio is allocated to the company. Other professional money managers that hold long positions consist of Renaissance Technologies, Israel Englander’s Millennium Management and Noam Gottesman’s GLG Partners. In terms of the portfolio weights assigned to each position Land & Buildings Investment Management allocated the biggest weight to Public Storage (NYSE:PSA), around 5.67% of its 13F portfolio. Hill Winds Capital is also relatively very bullish on the stock, setting aside 2.31 percent of its 13F equity portfolio to PSA.
As one would reasonably expect, specific money managers have jumped into Public Storage (NYSE:PSA) headfirst. Citadel Investment Group, managed by Ken Griffin, established the largest position in Public Storage (NYSE:PSA). Citadel Investment Group had $77.8 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $48.5 million investment in the stock during the quarter. The other funds with new positions in the stock are John Khoury’s Long Pond Capital, Israel Englander’s Millennium Management, and Michael Gelband’s ExodusPoint Capital.
Let’s now review hedge fund activity in other stocks similar to Public Storage (NYSE:PSA). These stocks are NXP Semiconductors NV (NASDAQ:NXPI), Ferrari N.V. (NYSE:RACE), Itau Unibanco Holding SA (NYSE:ITUB), Takeda Pharmaceutical Company Limited (NYSE:TAK), Prudential Public Limited Company (NYSE:PUK), Chipotle Mexican Grill, Inc. (NYSE:CMG), and KLA Corporation (NASDAQ:KLAC). All of these stocks’ market caps are similar to PSA’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NXPI | 51 | 1080819 | -1 |
| RACE | 27 | 1177569 | 0 |
| ITUB | 16 | 379560 | 0 |
| TAK | 15 | 443627 | -4 |
| PUK | 4 | 10147 | 0 |
| CMG | 39 | 3687748 | 4 |
| KLAC | 44 | 1844123 | -1 |
| Average | 28 | 1231942 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $1232 million. That figure was $1260 million in PSA’s case. NXP Semiconductors NV (NASDAQ:NXPI) is the most popular stock in this table. On the other hand Prudential Public Limited Company (NYSE:PUK) is the least popular one with only 4 bullish hedge fund positions. Public Storage (NYSE:PSA) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PSA is 73. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on PSA as the stock returned 21.4% since the end of Q3 (through 1/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
