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At Insider Monkey, we pore over the filings of nearly 873 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of June 30th. In this article, we will use that wealth of knowledge to determine whether or not Brixmor Property Group Inc (NYSE:BRX) makes for a good investment right now.
Brixmor Property Group Inc (NYSE:BRX) was in 21 hedge funds' portfolios at the end of June. The all time high for this statistic is 28. BRX investors should be aware of an increase in hedge fund sentiment of late. There were 18 hedge funds in our database with BRX holdings at the end of March. Our calculations also showed that BRX isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Michael Gelband of ExodusPoint Capital
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Do Hedge Funds Think BRX Is A Good Stock To Buy Now?
At the end of June, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 17% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in BRX over the last 24 quarters. With hedgies' sentiment swirling, there exists a select group of notable hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
The largest stake in Brixmor Property Group Inc (NYSE:BRX) was held by Arrowstreet Capital, which reported holding $55.1 million worth of stock at the end of June. It was followed by Waterfront Capital Partners with a $37.1 million position. Other investors bullish on the company included Balyasny Asset Management, Gillson Capital, and Hill Winds Capital. In terms of the portfolio weights assigned to each position Hill Winds Capital allocated the biggest weight to Brixmor Property Group Inc (NYSE:BRX), around 5.77% of its 13F portfolio. Waterfront Capital Partners is also relatively very bullish on the stock, designating 2.79 percent of its 13F equity portfolio to BRX.
As one would reasonably expect, key hedge funds were leading the bulls' herd. ExodusPoint Capital, managed by Michael Gelband, assembled the most outsized position in Brixmor Property Group Inc (NYSE:BRX). ExodusPoint Capital had $1.9 million invested in the company at the end of the quarter. Steve Cohen's Point72 Asset Management also made a $0.9 million investment in the stock during the quarter. The following funds were also among the new BRX investors: Peter Algert's Algert Global, Matthew Hulsizer's PEAK6 Capital Management, and Renee Yao's Neo Ivy Capital.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Brixmor Property Group Inc (NYSE:BRX) but similarly valued. We will take a look at VCA Antech Inc (NASDAQ:WOOF), Wyndham Hotels & Resorts, Inc. (NYSE:WH), First Industrial Realty Trust, Inc. (NYSE:FR), InVitae Corporation (NYSE:NVTA), OGE Energy Corp. (NYSE:OGE), Sonoco Products Company (NYSE:SON), and Emcor Group Inc (NYSE:EME). This group of stocks' market values resemble BRX's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WOOF,27,321057,2 WH,24,801135,0 FR,22,282144,2 NVTA,31,2151154,-3 OGE,17,276770,-6 SON,15,139239,-10 EME,21,147705,1 Average,22.4,588458,-2 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.4 hedge funds with bullish positions and the average amount invested in these stocks was $588 million. That figure was $180 million in BRX's case. InVitae Corporation (NYSE:NVTA) is the most popular stock in this table. On the other hand Sonoco Products Company (NYSE:SON) is the least popular one with only 15 bullish hedge fund positions. Brixmor Property Group Inc (NYSE:BRX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BRX is 49.3. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on BRX as the stock returned 5.4% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.