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Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4.5 years and analyze what the smart money thinks of Urban Edge Properties (NYSE:UE) based on that data.
Urban Edge Properties (NYSE:UE) has seen an increase in hedge fund interest in recent months. Our calculations also showed that UE isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 58 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 36% through May 18th. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
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Paul Marshall of Marshall Wace[/caption]
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we're going to check out the key hedge fund action encompassing Urban Edge Properties (NYSE:UE).
What does smart money think about Urban Edge Properties (NYSE:UE)?
At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in UE over the last 18 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Renaissance Technologies held the most valuable stake in Urban Edge Properties (NYSE:UE), which was worth $17.1 million at the end of the third quarter. On the second spot was Carlson Capital which amassed $12.9 million worth of shares. Millennium Management, Gillson Capital, and Balyasny Asset Management 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 Gillson Capital allocated the biggest weight to Urban Edge Properties (NYSE:UE), around 1.04% of its 13F portfolio. Carlson Capital is also relatively very bullish on the stock, earmarking 0.34 percent of its 13F equity portfolio to UE.
As aggregate interest increased, some big names have been driving this bullishness. Carlson Capital, managed by Clint Carlson, assembled the most valuable position in Urban Edge Properties (NYSE:UE). Carlson Capital had $12.9 million invested in the company at the end of the quarter. Dmitry Balyasny's Balyasny Asset Management also initiated a $4.8 million position during the quarter. The other funds with brand new UE positions are Paul Marshall and Ian Wace's Marshall Wace LLP, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital, and Greg Eisner's Engineers Gate Manager.
Let's now take a look at hedge fund activity in other stocks similar to Urban Edge Properties (NYSE:UE). These stocks are PennyMac Mortgage Investment Trust (NYSE:PMT), Gray Television, Inc. (NYSE:GTN), Myriad Genetics, Inc. (NASDAQ:MYGN), and United States Steel Corporation (NYSE:X). This group of stocks' market valuations resemble UE's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PMT,12,56020,-7 GTN,21,131988,-3 MYGN,11,102643,-4 X,17,36676,-9 Average,15.25,81832,-5.75 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $69 million in UE's case. Gray Television, Inc. (NYSE:GTN) is the most popular stock in this table. On the other hand Myriad Genetics, Inc. (NASDAQ:MYGN) is the least popular one with only 11 bullish hedge fund positions. Urban Edge Properties (NYSE:UE) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 12.2% in 2020 through June 17th but still beat the market by 14.8 percentage points. Hedge funds were also right about betting on UE, though not to the same extent, as the stock returned 23.6% during the first two months and seventeen days of the second quarter and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.