After several tireless days, we compiled the numbers from nearly 900 13F filings from the elite hedge funds and other investment firms we track at Insider Monkey, and disclosed their equity portfolios as of December 31st. The results of these efforts are featured in this article as we provide valuable insight into the smart money sentiment towards Innovative Industrial Properties, Inc. (NYSE:IIPR).
Is IIPR Stock a Buy? Innovative Industrial Properties, Inc. (NYSE:IIPR) Investors should be aware of a recent surge in hedge fund sentiment. Innovative Industrial Properties, Inc. (NYSE:IIPR) was in 23 hedge fund portfolios at the end of the fourth quarter of 2020. The all-time high for this statistic was previously 20. This means the bullish number of hedge fund positions in this stock is currently at its all-time high. At the end of September, there were 20 hedge funds with IIPR holdings in our database. Our calculations have also shown that IIPR is not one of them 30 Most Popular Stocks Among Hedge Funds (Click here for the Q4 ranking).
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Do Hedge Funds Think IIPR is a Good Stock to Buy Now?
At the beginning of the first quarter of 2021, a total of 23 of the hedge funds tracked by Insider Monkey were optimistic about this stock, a change of 15% from the previous quarter. On the flip side, a year ago there were a total of 16 hedge funds with a bullish position in IIPR. As the capital of smart money changes hands, there is a select group of well-known hedge fund managers who have significantly increased their holdings (or have already accumulated large positions).
More accurate, Zimmer Partners was the largest shareholder in Innovative Industrial Properties, Inc. (NYSE: IIPR) with a $ 164.8 million interest reported in late December. Behind Zimmer Partners was CaaS Capital, which amassed a $ 29.4 million stake. Arrowstreet Capital, Citadel Investment Group, and Waterfront Capital Partners were also very fond of the stock and became one of the company’s largest hedge fund owners. In terms of portfolio weights assigned to each position, Zimmer Partners assigned the largest weighting to Innovative Industrial Properties, Inc. (NYSE: IIPR) at approximately 2.42% of its 13F portfolio. Waterfront Capital Partners is also relatively bullish on the stock, earmarking 1.41 percent of its 13F stock portfolio for IIPR.
As a result, major hedge funds themselves have broken new ground. CaaS Capital, managed by Frank Fu, initiated the largest position in Innovative Industrial Properties, Inc. (NYSE: IIPR). CaaS Capital had invested $ 29.4 million in the company at the end of the quarter. George McCabes Portolan Capital Management During the quarter, the company invested $ 2.9 million in the stock. The following funds were also among the new IIPR investors: Allon Hellmanns Full18 Capital, Alec Litowitz and Ross Lasers Magnetar Capital, and Paul Tudor Jones’ Tudor Investment Corp.
Let’s also examine hedge fund activity in other stocks similar to Innovative Industrial Properties, Inc. (NYSE: IIPR). These stocks are Simpson Manufacturing Co, Inc. (NYSE:SSD), Cannae Holdings, Inc. (NYSE:CNNE), Atlantica Sustainable Infrastructure plc (NASDAQ:AY), Hexcel Corporation (NYSE:HXL), Bank OZK (NASDAQ:OZK), Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) and Park Hotels & Resorts Inc. (NYSE:PK). The market valuations of this group of stocks are similar to the market valuation of IIPR.
[table] Ticker, number of HFs with positions, total value of HF positions (x1000), change in HF position SSD, 25.219735.8 CNNE, 34.534239.5 AY, 14.98156.3 HXL, 25.166619.5 OZK 20.260732.0 AJRD, 36.802349.10 PK, 13.112554, -4 Average, 23.9.313483.3.9 [/table]
View table here When formatting problems occur.
As you can see, these stocks had an average of 23.9 hedge funds with bullish positions and the average amount invested in these stocks was $ 313 million. That figure was $ 318 million in the case of IIPR. Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) is the most popular stock in this table. On the other hand, Park Hotels & Resorts Inc. (NYSE:PK) is the least popular, with only 13 bullish hedge fund positions. Innovative Industrial Properties, Inc. (NYSE: IIPR) isn’t the least popular stock in this group, but interest in hedge funds is still below average. Our overall hedge fund sentiment for IIPR is 59.7. Stocks with a higher number of hedge fund positions relative to other stocks and relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we prefer to spend our time researching stocks that hedge funds are piling up on. Our calculations have shown that Top 30 most popular stocks Hedge funds returned 81.2% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 12.3% through April 19, 2021, again outperforming the market by 0.9 percentage points. Unfortunately, IIPR was nowhere near as popular as these 30 stocks (the sentiment among hedge funds was pretty bearish); IIPR investors were disappointed when the stock returned -0.5% since late December (through April 19) and underperformed the market. If you’re interested in investing in large-cap stocks with big upside potential, this is what you should check out Top 30 most popular stocks among hedge funds, as most of these stocks outperformed the market as early as 2020.
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Disclosure: None. This article was originally published at Insider monkey.