Here is What Hedge Funds Think About Starwood Property Trust, Inc. (STWD)

Starwood Property Trust, Inc. (NYSE:STWD) has seen an increase in support from the world’s most elite money managers of late.

In today’s marketplace, there are a multitude of methods investors can use to monitor the equity markets. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can outclass the market by a superb margin (see just how much).

Equally as key, positive insider trading sentiment is a second way to break down the stock market universe. Obviously, there are many incentives for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if investors know where to look (learn more here).

With all of this in mind, let’s take a glance at the key action regarding Starwood Property Trust, Inc. (NYSE:STWD).

What does the smart money think about Starwood Property Trust, Inc. (NYSE:STWD)?

In preparation for this quarter, a total of 23 of the hedge funds we track held long positions in this stock, a change of 15% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings considerably.

When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in Starwood Property Trust, Inc. (NYSE:STWD). Citadel Investment Group has a $87.3 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which held a $52.7 million position; 0.2% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Robert Pohly’s Samlyn Capital, Amy Minella’s Cardinal Capital and John Paulson’s Paulson & Co.

As one would reasonably expect, key hedge funds were leading the bulls’ herd. Samlyn Capital, managed by Robert Pohly, assembled the biggest position in Starwood Property Trust, Inc. (NYSE:STWD). Samlyn Capital had 32.7 million invested in the company at the end of the quarter. John Paulson’s Paulson & Co also initiated a $27.5 million position during the quarter. The other funds with new positions in the stock are Joe DiMenna’s ZWEIG DIMENNA PARTNERS, Malcolm Fairbairn’s Ascend Capital, and Alec Litowitz and Ross Laser’s Magnetar Capital.

Insider trading activity in Starwood Property Trust, Inc. (NYSE:STWD)

Insider trading activity, especially when it’s bullish, is best served when the company in question has seen transactions within the past half-year. Over the latest six-month time frame, Starwood Property Trust, Inc. (NYSE:STWD) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Starwood Property Trust, Inc. (NYSE:STWD). These stocks are Chimera Investment Corporation (NYSE:CIM), MFA Financial, Inc. (NYSE:MFA), National Retail Properties, Inc. (NYSE:NNN), Retail Properties of America Inc (NYSE:RPAI), and Douglas Emmett, Inc. (NYSE:DEI). All of these stocks are in the reit – diversified industry and their market caps resemble STWD’s market cap.

With the returns exhibited by the aforementioned strategies, everyday investors should always watch hedge fund and insider trading sentiment, and Starwood Property Trust, Inc. (NYSE:STWD) applies perfectly to this mantra.

Click here to learn why you should track hedge funds