A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Forestar Group Inc. (NYSE:FOR) .
Forestar Group Inc. (NYSE:FOR) investors should be aware of an increase in hedge fund interest in recent months. More specifically, the number of funds tracked by Insider Monkey long the stock went up by five to 15 during the third quarter. At the end of this article we will also compare FOR to other stocks including Ashford Hospitality Prime Inc (NYSE:AHP), World Acceptance Corp. (NASDAQ:WRLD), and Haynes International, Inc. (NASDAQ:HAYN) to get a better sense of its popularity.
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Follow Forestar Group Inc.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, let’s review the fresh action regarding Forestar Group Inc. (NYSE:FOR).
Hedge fund activity in Forestar Group Inc. (NYSE:FOR)
At the end of the third quarter, 15 funds tracked by Insider Monkey were bullish on Forestar Group, up by 50% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards FOR over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Cove Street Capital, led by Jeffrey Bronchick, holds the largest position in Forestar Group Inc. (NYSE:FOR). Cove Street Capital has a $36.3 million position in the stock, comprising 3.9% of its 13F portfolio. Sitting at the No. 2 spot is Carlson Capital, managed by Clint Carlson, which holds a $33.6 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism encompass Steve Pei’s Gratia Capital, Seth Fischer’s Oasis Management, and Bart Baum’s Ionic Capital Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
As one would reasonably expect, key hedge funds have jumped into Forestar Group Inc. (NYSE:FOR) headfirst. Cove Street Capital established the largest position in Forestar Group Inc. (NYSE:FOR). Ionic Capital Management also initiated a $4.6 million position during the quarter. The other funds with new positions in the stock are Daniel Beltzman and Gergory Smith’s Birch Run Capital and John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Forestar Group Inc. (NYSE:FOR) but similarly valued. These stocks are Ashford Hospitality Prime Inc (NYSE:AHP), World Acceptance Corp. (NASDAQ:WRLD), Haynes International, Inc. (NASDAQ:HAYN), and NewStar Financial Inc (NASDAQ:NEWS). This group of stocks’ market values match FOR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AHP | 12 | 144264 | 2 |
| WRLD | 11 | 29434 | 1 |
| HAYN | 8 | 43566 | 1 |
| NEWS | 4 | 118119 | 0 |
As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $84 million, compared to $110 million in FOR’s case. Ashford Hospitality Prime Inc (NYSE:AHP) is the most popular stock in this table. On the other hand NewStar Financial Inc (NASDAQ:NEWS) is the least popular one with only four bullish hedge fund positions. Compared to these stocks Forestar Group Inc. (NYSE:FOR) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
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