Apollo Commercial Real Est. Finance Inc (NYSE:ARI) was in 13 hedge funds’ portfolio at the end of March. ARI investors should pay attention to an increase in activity from the world’s largest hedge funds recently. There were 11 hedge funds in our database with ARI holdings at the end of the previous quarter.
To most investors, hedge funds are perceived as underperforming, old investment vehicles of the past. While there are over 8000 funds with their doors open today, we choose to focus on the top tier of this group, about 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total capital, and by watching their top picks, we have revealed a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Just as important, bullish insider trading activity is a second way to break down the world of equities. Obviously, there are plenty of motivations for an executive to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this tactic if shareholders know where to look (learn more here).
Consequently, it’s important to take a look at the recent action encompassing Apollo Commercial Real Est. Finance Inc (NYSE:ARI).
Hedge fund activity in Apollo Commercial Real Est. Finance Inc (NYSE:ARI)
In preparation for this quarter, a total of 13 of the hedge funds we track held long positions in this stock, a change of 18% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings significantly.
Of the funds we track, Jim Simons’s Renaissance Technologies had the largest position in Apollo Commercial Real Est. Finance Inc (NYSE:ARI), worth close to $17.7 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which held a $13.8 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Brian Jackelow’s SAB Capital Management, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, specific money managers have jumped into Apollo Commercial Real Est. Finance Inc (NYSE:ARI) headfirst. SAB Capital Management, managed by Brian Jackelow, initiated the most outsized position in Apollo Commercial Real Est. Finance Inc (NYSE:ARI). SAB Capital Management had 8.9 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $5.8 million investment in the stock during the quarter. The other funds with brand new ARI positions are Israel Englander’s Millennium Management and Dmitry Balyasny’s Balyasny Asset Management.
What do corporate executives and insiders think about Apollo Commercial Real Est. Finance Inc (NYSE:ARI)?
Insider purchases made by high-level executives is best served when the company in question has experienced transactions within the past half-year. Over the latest 180-day time frame, Apollo Commercial Real Est. Finance Inc (NYSE:ARI) has seen 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 Apollo Commercial Real Est. Finance Inc (NYSE:ARI). These stocks are Winthrop Realty Trust (NYSE:FUR), Anworth Mortgage Asset Corporation (NYSE:ANH), RAIT Financial Trust (NYSE:RAS), AG Mortgage Investment Trust Inc (NYSE:MITT), and Excel Trust Inc (NYSE:EXL). This group of stocks are the members of the reit – diversified industry and their market caps match ARI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Winthrop Realty Trust (NYSE:FUR) | 7 | 0 | 0 |
| Anworth Mortgage Asset Corporation (NYSE:ANH) | 11 | 0 | 2 |
| RAIT Financial Trust (NYSE:RAS) | 12 | 1 | 0 |
| AG Mortgage Investment Trust Inc (NYSE:MITT) | 9 | 0 | 1 |
| Excel Trust Inc (NYSE:EXL) | 4 | 0 | 0 |
With the returns demonstrated by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading activity, and Apollo Commercial Real Est. Finance Inc (NYSE:ARI) is no exception.
