Hedge Funds Have Never Been More Bullish On National Retail Properties, Inc. (NNN)
Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Amazon, Facebook and Alibaba, have not done well in Q4 of 2018 due to various reasons. Nevertheless, the data show elite investors' consensus picks have done well on average over the long-term. The top 20 stocks among hedge funds beat the S&P 500 Index ETFs by nearly 10 percentage points during the first 11 months of 2019. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at National Retail Properties, Inc. (NYSE:NNN) from the perspective of those elite funds.
Is National Retail Properties, Inc. (NYSE:NNN) a buy right now? Investors who are in the know are turning bullish. The number of long hedge fund positions inched up by 4 lately. Our calculations also showed that NNN isn't among the 30 most popular stocks among hedge funds. NNN was in 20 hedge funds' portfolios at the end of the third quarter of 2019. There were 16 hedge funds in our database with NNN positions at the end of the previous quarter. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
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 flagship best performing hedge funds strategy returned 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 percentage points. That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds' buy/sell signals. Let's take a look at the key hedge fund action encompassing National Retail Properties, Inc. (NYSE:NNN).
How have hedgies been trading National Retail Properties, Inc. (NYSE:NNN)?
At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 25% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in NNN over the last 17 quarters. With hedgies' sentiment swirling, there exists a select group of notable hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).
Credit: Nina Todic, Insider Monkey December 9, 2019