You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund managers like Jeff Ubben, George Soros and Seth Klarman hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Physicians Realty Trust (NYSE:DOC) was in 12 hedge funds’ portfolios at the end of June. DOC has seen an increase in activity from the world’s largest hedge funds in recent months. There were 11 hedge funds in our database with DOC holdings at the end of the previous quarter. Our calculations also showed that DOC isn’t among the 30 most popular stocks among hedge funds (view the video below).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
To most shareholders, hedge funds are seen as underperforming, old investment vehicles of the past. While there are over 8000 funds trading today, Our researchers look at the top tier of this group, around 750 funds. Most estimates calculate that this group of people shepherd the majority of all hedge funds’ total capital, and by tracking their matchless picks, Insider Monkey has formulated various investment strategies that have historically beaten Mr. Market. Insider Monkey’s flagship hedge fund strategy outrun the S&P 500 index by around 5 percentage points per annum since its inception in May 2014. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 25.7% since February 2017 (through September 30th) even though the market was up more than 33% during the same period. We just shared a list of 10 short targets in our latest quarterly update .
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We’re going to take a look at the new hedge fund action regarding Physicians Realty Trust (NYSE:DOC).
How are hedge funds trading Physicians Realty Trust (NYSE:DOC)?
Heading into the third quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 9% from the previous quarter. The graph below displays the number of hedge funds with bullish position in DOC over the last 16 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Hudson Bay Capital Management, managed by Sander Gerber, holds the number one position in Physicians Realty Trust (NYSE:DOC). Hudson Bay Capital Management has a $12.6 million position in the stock, comprising 0.3% of its 13F portfolio. The second most bullish fund manager is Sandler Capital Management, managed by Andrew Sandler, which holds a $9.4 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions contain Anand Parekh’s Alyeska Investment Group, Ken Griffin’s Citadel Investment Group and Paul Marshall and Ian Wace’s Marshall Wace LLP.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, established the most valuable position in Physicians Realty Trust (NYSE:DOC). Marshall Wace LLP had $3.1 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $0 million investment in the stock during the quarter. The only other fund with a new position in the stock is Matthew Hulsizer’s PEAK6 Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Physicians Realty Trust (NYSE:DOC) but similarly valued. These stocks are Colfax Corporation (NYSE:CFX), Schneider National, Inc. (NYSE:SNDR), Merit Medical Systems, Inc. (NASDAQ:MMSI), and Rexnord Corporation (NYSE:RXN). All of these stocks’ market caps resemble DOC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CFX | 27 | 551842 | -5 |
| SNDR | 21 | 96266 | 2 |
| MMSI | 17 | 236611 | 0 |
| RXN | 20 | 209545 | -1 |
| Average | 21.25 | 273566 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $274 million. That figure was $48 million in DOC’s case. Colfax Corporation (NYSE:CFX) is the most popular stock in this table. On the other hand Merit Medical Systems, Inc. (NASDAQ:MMSI) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Physicians Realty Trust (NYSE:DOC) is even less popular than MMSI. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on DOC, though not to the same extent, as the stock returned 3.1% during the third quarter and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.
