Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Catchmark Timber Trust Inc (NYSE:CTT) based on that data.
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Catchmark Timber Trust Inc (NYSE:CTT) was in 11 hedge funds’ portfolio at the end of September. CTT shareholders have witnessed an increase in support from the world’s most elite money managers of late. There were 8 hedge funds in our database with CTT positions at the end of the previous quarter. At the end of this article we will also compare CTT to other stocks including Apollo Residential Mortgage Inc (NYSE:AMTG), Natural Health Trends Corp. (NASDAQ:NHTC), and Calix Inc (NYSE:CALX) to get a better sense of its popularity.
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In today’s marketplace there are many indicators stock traders put to use to appraise stocks. A duo of the most under-the-radar indicators are hedge fund and insider trading activity. Our research have shown that, historically, those who follow the top picks of the best investment managers can outperform their index-focused peers by a significant amount (see the details here).
With all of this in mind, let’s take a gander at the key action encompassing Catchmark Timber Trust Inc (NYSE:CTT).
Hedge fund activity in Catchmark Timber Trust Inc (NYSE:CTT)
At Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of 38% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully.
According to hedge fund experts at Insider Monkey, Huber Capital Management, managed by Joe Huber, holds the largest position in Catchmark Timber Trust Inc (NYSE:CTT). Huber Capital Management has a $17.4 million position in the stock, comprising 0.6% of its 13F portfolio. The second most bullish hedge fund manager is Vertex One Asset Management, led by John Thiessen, holding a $5.8 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism encompass Martin Whitman’s Third Avenue Management, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.
As aggregate interest increased, key hedge funds were leading the bulls’ herd. Third Avenue Management, managed by Martin Whitman, initiated the biggest position in Catchmark Timber Trust Inc (NYSE:CTT). Third Avenue Management had $1.6 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is Paul Tudor Jones’s Tudor Investment Corp.
Let’s also examine hedge fund activity in other stocks similar to Catchmark Timber Trust Inc (NYSE:CTT). These stocks are Apollo Residential Mortgage Inc (NYSE:AMTG), Natural Health Trends Corp. (NASDAQ:NHTC), Calix Inc (NYSE:CALX), and Waterstone Financial, Inc. (NASDAQ:WSBF). This group of stocks’ market caps resemble CTT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AMTG | 11 | 44717 | -2 |
| NHTC | 13 | 38173 | 4 |
| CALX | 20 | 67632 | 3 |
| WSBF | 10 | 52712 | -1 |
As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $51 million.That figure was $29 millions in CTT’s case. Calix Inc (NYSE:CALX) is the most popular stock in this table. On the other hand Waterstone Financial, Inc. (NASDAQ:WSBF) is the least popular one with only 10 bullish hedge fund positions. Catchmark Timber Trust Inc (NYSE:CTT) 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 CALX might be a better candidate to consider a long position.