We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Re/Max Holdings Inc (NYSE:RMAX) based on that data.
Re/Max Holdings Inc (NYSE:RMAX) has seen a decrease in enthusiasm from smart money in recent months. RMAX was in 5 hedge funds’ portfolios at the end of the third quarter of 2015. There were 10 hedge funds in our database with RMAX holdings at the end of the previous quarter. At the end of this article we will also compare RMAX to other stocks including Dorchester Minerals LP (NASDAQ:DMLP), CARBO Ceramics Inc. (NYSE:CRR), and Stein Mart, Inc. (NASDAQ:SMRT) to get a better sense of its popularity.
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In the financial world, there are many indicators investors can use to value their holdings. A couple of the less utilized indicators are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the best fund managers can outpace their index-focused peers by a very impressive amount (see the details here).
Now, let’s take a glance at the latest action encompassing Re/Max Holdings Inc (NYSE:RMAX).
How are hedge funds trading Re/Max Holdings Inc (NYSE:RMAX)?
At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -50% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jim Simons’ Renaissance Technologies has the biggest position in Re/Max Holdings Inc (NYSE:RMAX), worth close to $8 million, corresponding to less than 0.1%% of its total 13F portfolio. On Renaissance Technologies’s heels is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holding an $0.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish encompass John Overdeck and David Siegel’s Two Sigma Advisors, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.
Seeing as Re/Max Holdings Inc (NYSE:RMAX) has experienced falling interest from the smart money, logic holds that there exists a select few funds that slashed their full holdings heading into Q4. Interestingly, Brett Barakett’s Tremblant Capital sold off the biggest stake of all the hedgies monitored by Insider Monkey, comprising an estimated $2.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $0.5 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 5 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Re/Max Holdings Inc (NYSE:RMAX) but similarly valued. We will take a look at Dorchester Minerals LP (NASDAQ:DMLP), CARBO Ceramics Inc. (NYSE:CRR), Stein Mart, Inc. (NASDAQ:SMRT), and Forestar Group Inc. (NYSE:FOR). This group of stocks’ market values are closest to RMAX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DMLP | 5 | 9763 | -1 |
| CRR | 7 | 32194 | -7 |
| SMRT | 13 | 62235 | -3 |
| FOR | 8 | 67469 | -5 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was just $10 million in RMAX’s case. Stein Mart, Inc. (NASDAQ:SMRT) is the most popular stock in this table. On the other hand, Dorchester Minerals LP (NASDAQ:DMLP) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Re/Max Holdings Inc (NYSE:RMAX) is not very popular among hedge funds, since it also had just 5 funds holding its shares. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
