After several tireless days we have finished crunching the numbers from the more than 700 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Monmouth R.E. Inv. Corp. (NYSE:MNR).
Monmouth R.E. Inv. Corp. (NYSE:MNR) has experienced an increase in hedge fund interest of late. Our calculations also showed that MNR isn’t among the 30 most popular stocks among hedge funds.
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 6.3% year to date (through December 3rd) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 18 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
We’re going to take a glance at the recent hedge fund action regarding Monmouth R.E. Inv. Corp. (NYSE:MNR).
Hedge fund activity in Monmouth R.E. Inv. Corp. (NYSE:MNR)
At the end of the third quarter, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 14% from the previous quarter. On the other hand, there were a total of 8 hedge funds with a bullish position in MNR at the beginning of this year. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Renaissance Technologies was the largest shareholder of Monmouth R.E. Inv. Corp. (NYSE:MNR), with a stake worth $49.3 million reported as of the end of September. Trailing Renaissance Technologies was Millennium Management, which amassed a stake valued at $9.7 million. Citadel Investment Group, Two Sigma Advisors, and Arrowstreet Capital were also very fond of the stock, giving the stock large weights in their portfolios.
Consequently, some big names have been driving this bullishness. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the most outsized position in Monmouth R.E. Inv. Corp. (NYSE:MNR). Arrowstreet Capital had $4.9 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $1.4 million investment in the stock during the quarter. The only other fund with a new position in the stock is Frederick DiSanto’s Ancora Advisors.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Monmouth R.E. Inv. Corp. (NYSE:MNR) but similarly valued. We will take a look at Redwood Trust, Inc. (NYSE:RWT), TPG RE Finance Trust, Inc. (NYSE:TRTX), Uniqure NV (NASDAQ:QURE), and Bluegreen Vacations Corporation (NYSE:BXG). All of these stocks’ market caps are closest to MNR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RWT | 12 | 76139 | 3 |
| TRTX | 10 | 28122 | 6 |
| QURE | 19 | 320752 | 0 |
| BXG | 2 | 5851 | 1 |
| Average | 10.75 | 107716 | 2.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.75 hedge funds with bullish positions and the average amount invested in these stocks was $108 million. That figure was $78 million in MNR’s case. Uniqure NV (NASDAQ:QURE) is the most popular stock in this table. On the other hand Bluegreen Vacations Corporation (NYSE:BXG) is the least popular one with only 2 bullish hedge fund positions. Monmouth R.E. Inv. Corp. (NYSE:MNR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard QURE might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
