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 have processed the filings of the more than 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider Brookfield Property Partners LP (NASDAQ:BPY) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Brookfield Property Partners LP (NASDAQ:BPY) was in 17 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 11. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. BPY shareholders have witnessed an increase in hedge fund interest of late. There were 9 hedge funds in our database with BPY holdings at the end of December. Our calculations also showed that BPY isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 206.8% since March 2017 and outperformed the S&P 500 ETFs by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Ken Griffin of Citadel Investment Group
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, pet market is growing at a 7% annual rate and is expected to reach $110 billion in 2021. So, we are checking out the 5 best stocks for animal lovers. We go through lists like the 15 best Jim Cramer stocks to identify the next Tesla that will deliver outsized returns. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to review the latest hedge fund action surrounding Brookfield Property Partners LP (NASDAQ:BPY).
Do Hedge Funds Think BPY Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 89% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards BPY over the last 23 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Citadel Investment Group was the largest shareholder of Brookfield Property Partners LP (NASDAQ:BPY), with a stake worth $84.1 million reported as of the end of March. Trailing Citadel Investment Group was TIG Advisors, which amassed a stake valued at $42.5 million. Melqart Asset Management, Segantii Capital, and LMR Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Ursa Fund Management allocated the biggest weight to Brookfield Property Partners LP (NASDAQ:BPY), around 4.44% of its 13F portfolio. TIG Advisors is also relatively very bullish on the stock, designating 1.6 percent of its 13F equity portfolio to BPY.
Consequently, key hedge funds have jumped into Brookfield Property Partners LP (NASDAQ:BPY) headfirst. TIG Advisors, managed by Carl Tiedemann and Michael Tiedemann, initiated the largest position in Brookfield Property Partners LP (NASDAQ:BPY). TIG Advisors had $42.5 million invested in the company at the end of the quarter. Michel Massoud’s Melqart Asset Management also initiated a $20.5 million position during the quarter. The other funds with brand new BPY positions are Simon Sadler’s Segantii Capital, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, and Michael Price’s MFP Investors.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Brookfield Property Partners LP (NASDAQ:BPY) but similarly valued. These stocks are Akamai Technologies, Inc. (NASDAQ:AKAM), Cincinnati Financial Corporation (NASDAQ:CINF), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Mid America Apartment Communities Inc (NYSE:MAA), ASE Technology Holding Co., Ltd. (NYSE:ASX), Penn National Gaming, Inc (NASDAQ:PENN), and Nomura Holdings, Inc. (NYSE:NMR). All of these stocks’ market caps resemble BPY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AKAM | 25 | 206922 | -8 |
| CINF | 22 | 886358 | 2 |
| ALNY | 33 | 740380 | -6 |
| MAA | 25 | 251877 | -1 |
| ASX | 8 | 232071 | -1 |
| PENN | 42 | 907475 | 1 |
| NMR | 10 | 19579 | 4 |
| Average | 23.6 | 463523 | -1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.6 hedge funds with bullish positions and the average amount invested in these stocks was $464 million. That figure was $205 million in BPY’s case. Penn National Gaming, Inc (NASDAQ:PENN) is the most popular stock in this table. On the other hand ASE Technology Holding Co., Ltd. (NYSE:ASX) is the least popular one with only 8 bullish hedge fund positions. Brookfield Property Partners LP (NASDAQ:BPY) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BPY is 53.2. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 28.5% in 2021 through July 23rd and surpassed the market again by 10.1 percentage points. Unfortunately BPY wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); BPY investors were disappointed as the stock returned 4.8% since the end of March (through 7/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow Brookfield Property Partners L.p. (NYSE:BPY)
Follow Brookfield Property Partners L.p. (NYSE:BPY)
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Disclosure: None. This article was originally published at Insider Monkey.
