Is it smart to be bullish on Apollo Residential Mortgage Inc (NYSE:AMTG)
At the moment, there are a multitude of metrics shareholders can use to monitor publicly traded companies. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat the S&P 500 by a healthy margin (see just how much).
Just as crucial, bullish insider trading sentiment is another way to look at the stock market universe. As the old adage goes: there are a number of motivations for an insider to downsize shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).
Thus, we’re going to examine the recent info surrounding Apollo Residential Mortgage Inc (NYSE:AMTG).
How have hedgies been trading Apollo Residential Mortgage Inc (NYSE:AMTG)?
In preparation for the third quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of -27% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully.
When using filings from the hedgies we track, Pine River Capital Management, managed by Brian Taylor, holds the largest position in Apollo Residential Mortgage Inc (NYSE:AMTG). Pine River Capital Management has a $23.9 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $11.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Israel Englander’s Millennium Management, Nathaniel August’s Mangrove Partners and Matthew Hulsizer’s PEAK6 Capital Management.
Due to the fact Apollo Residential Mortgage Inc (NYSE:AMTG) has experienced bearish sentiment from the top-tier hedge fund industry, it’s easy to see that there exists a select few fund managers that elected to cut their entire stakes last quarter. Interestingly, Alec Litowitz and Ross Laser’s Magnetar Capital dumped the largest stake of the 450+ funds we watch, comprising about $8.9 million in stock, and John Thiessen of Vertex One Asset Management was right behind this move, as the fund cut about $0.8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds last quarter.
What do corporate executives and insiders think about Apollo Residential Mortgage Inc (NYSE:AMTG)?
Insider buying is most useful when the primary stock in question has seen transactions within the past 180 days. Over the latest half-year time period, Apollo Residential Mortgage Inc (NYSE:AMTG) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Apollo Residential Mortgage Inc (NYSE:AMTG). These stocks are Education Realty Trust, Inc. (NYSE:EDR), Associated Estates Realty Corporation (NYSE:AEC), Dynex Capital Inc (NYSE:DX), Silver Bay Realty Trust Corp (NYSE:SBY), and Resource Capital Corp. (NYSE:RSO). This group of stocks belong to the reit – residential industry and their market caps are closest to AMTG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Education Realty Trust, Inc. (NYSE:EDR) | 8 | 0 | 0 |
| Associated Estates Realty Corporation (NYSE:AEC) | 5 | 0 | 0 |
| Dynex Capital Inc (NYSE:DX) | 5 | 0 | 0 |
| Silver Bay Realty Trust Corp (NYSE:SBY) | 12 | 0 | 0 |
| Resource Capital Corp. (NYSE:RSO) | 10 | 0 | 0 |
Using the results shown by our analyses, average investors must always keep one eye on hedge fund and insider trading activity, and Apollo Residential Mortgage Inc (NYSE:AMTG) applies perfectly to this mantra.
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