Biomed Realty Trust Inc (BMR): Insiders Aren’t Crazy About It

Is Biomed Realty Trust Inc (NYSE:BMR) a sound investment now? The smart money is in a bullish mood. The number of bullish hedge fund positions inched up by 9 lately.

According to most shareholders, hedge funds are seen as slow, old financial tools of the past. While there are over 8000 funds trading at present, we at Insider Monkey choose to focus on the moguls of this club, about 450 funds. It is widely believed that this group controls the lion’s share of the hedge fund industry’s total capital, and by paying attention to their highest performing investments, we have uncovered a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as integral, positive insider trading sentiment is another way to parse down the world of equities. Just as you’d expect, there are a variety of stimuli for an insider to sell shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this strategy if “monkeys” understand what to do (learn more here).

Consequently, we’re going to take a glance at the recent action encompassing Biomed Realty Trust Inc (NYSE:BMR).

Hedge fund activity in Biomed Realty Trust Inc (NYSE:BMR)

Heading into Q2, a total of 18 of the hedge funds we track were bullish in this stock, a change of 100% from the first quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Jeffrey Furber’s AEW Capital Management had the most valuable position in Biomed Realty Trust Inc (NYSE:BMR), worth close to $63 million, comprising 1.6% of its total 13F portfolio. Coming in second is Ken Fisher of Fisher Asset Management, with a $50.1 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.

As aggregate interest increased, some big names have jumped into Biomed Realty Trust Inc (NYSE:BMR) headfirst. D E Shaw, managed by D. E. Shaw, assembled the most valuable position in Biomed Realty Trust Inc (NYSE:BMR). D E Shaw had 21.1 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $5.3 million investment in the stock during the quarter. The other funds with brand new BMR positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Dmitry Balyasny’s Balyasny Asset Management, and Matthew Tewksbury’s Stevens Capital Management.

What have insiders been doing with Biomed Realty Trust Inc (NYSE:BMR)?

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time frame, Biomed Realty Trust Inc (NYSE:BMR) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Biomed Realty Trust Inc (NYSE:BMR). These stocks are Sovran Self Storage Inc (NYSE:SSS), DCT Industrial Trust Inc. (NYSE:DCT), CubeSmart (NYSE:CUBE), Duke Realty Corp (NYSE:DRE), and Extra Space Storage, Inc. (NYSE:EXR). This group of stocks are in the reit – industrial industry and their market caps are similar to BMR’s market cap.

With the returns exhibited by our studies, everyday investors should always watch hedge fund and insider trading sentiment, and Biomed Realty Trust Inc (NYSE:BMR) is no exception.

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