Retail Opportunity Investments Corp (NASDAQ:ROIC) was in 13 hedge funds’ portfolio at the end of December. ROIC has experienced an increase in enthusiasm from smart money in recent months. There were 12 hedge funds in our database with ROIC positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of metrics shareholders can use to watch Mr. Market. A pair of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outperform the broader indices by a significant amount (see just how much).
Equally as important, bullish insider trading activity is a second way to break down the stock market universe. Obviously, there are a number of reasons for an upper level exec to get rid of shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the valuable potential of this method if you know where to look (learn more here).
With these “truths” under our belt, we’re going to take a gander at the recent action encompassing Retail Opportunity Investments Corp (NASDAQ:ROIC).
What have hedge funds been doing with Retail Opportunity Investments Corp (NASDAQ:ROIC)?
At year’s end, a total of 13 of the hedge funds we track were long in this stock, a change of 8% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Fir Tree, managed by Jeffrey Tannenbaum, holds the largest position in Retail Opportunity Investments Corp (NASDAQ:ROIC). Fir Tree has a $41 million position in the stock, comprising 1% of its 13F portfolio. The second largest stake is held by AEW Capital Management, managed by Jeffrey Furber, which held a $29 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Glenn J. Krevlin’s Glenhill Advisors, Israel Englander’s Millennium Management and Cliff Asness’s AQR Capital Management.
As industrywide interest jumped, some big names were leading the bulls’ herd. Mariner Investment Group, managed by William Michaelcheck, created the biggest position in Retail Opportunity Investments Corp (NASDAQ:ROIC). Mariner Investment Group had 0 million invested in the company at the end of the quarter.
How have insiders been trading Retail Opportunity Investments Corp (NASDAQ:ROIC)?
Insider buying is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the latest six-month time frame, Retail Opportunity Investments Corp (NASDAQ:ROIC) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Retail Opportunity Investments Corp (NASDAQ:ROIC). These stocks are Ramco-Gershenson Properties Trust (NYSE:RPT), Getty Realty Corp. (NYSE:GTY), Urstadt Biddle Properties Inc (NYSE:UBA), Inland Real Estate Corporation (NYSE:IRC), and Saul Centers Inc (NYSE:BFS). All of these stocks are in the reit – retail industry and their market caps match ROIC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ramco-Gershenson Properties Trust (NYSE:RPT) | 9 | 0 | 0 |
| Getty Realty Corp. (NYSE:GTY) | 5 | 0 | 0 |
| Urstadt Biddle Properties Inc (NYSE:UBA) | 6 | 1 | 0 |
| Inland Real Estate Corporation (NYSE:IRC) | 5 | 9 | 0 |
| Saul Centers Inc (NYSE:BFS) | 5 | 1 | 6 |
With the results shown by the aforementioned tactics, retail investors should always monitor hedge fund and insider trading sentiment, and Retail Opportunity Investments Corp (NASDAQ:ROIC) is no exception.
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