Is Resource Capital Corp. (RSO) Going to Burn These Hedge Funds?

Is Resource Capital Corp. (NYSE:RSO) an outstanding stock to buy now? Investors who are in the know are becoming more confident. The number of bullish hedge fund positions advanced by 5 in recent months.

At the moment, there are tons of gauges shareholders can use to track Mr. Market. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform the broader indices by a superb margin (see just how much).

Equally as key, positive insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are lots of reasons for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this strategy if “monkeys” understand where to look (learn more here).

With all of this in mind, we’re going to take a glance at the key action regarding Resource Capital Corp. (NYSE:RSO).

Hedge fund activity in Resource Capital Corp. (NYSE:RSO)

At the end of the first quarter, a total of 12 of the hedge funds we track held long positions in this stock, a change of 71% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes considerably.

When looking at the hedgies we track, Jim Simons’s Renaissance Technologies had the biggest position in Resource Capital Corp. (NYSE:RSO), worth close to $9.7 million, accounting for less than 0.1%% of its total 13F portfolio. On Renaissance Technologies’s heels is Omega Advisors, managed by Leon Cooperman, which held a $5.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Anil Stevens and Glenn Shapiro’s Parameter Capital Management, Israel Englander’s Millennium Management and Jacob Gottlieb’s Visium Asset Management.

Now, key money managers were breaking ground themselves. Parameter Capital Management, managed by Anil Stevens and Glenn Shapiro, created the most valuable position in Resource Capital Corp. (NYSE:RSO). Parameter Capital Management had 3.3 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also initiated a $1.7 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Ken Griffin’s Citadel Investment Group, and David Costen Haley’s HBK Investments.

What have insiders been doing with Resource Capital Corp. (NYSE:RSO)?

Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest six-month time period, Resource Capital Corp. (NYSE:RSO) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Resource Capital Corp. (NYSE:RSO). These stocks are Education Realty Trust, Inc. (NYSE:EDR), Associated Estates Realty Corporation (NYSE:AEC), Dynex Capital Inc (NYSE:DX), Silver Bay Realty Trust Corp (NYSE:SBY), and Apollo Residential Mortgage Inc (NYSE:AMTG). This group of stocks are in the reit – residential industry and their market caps are closest to RSO’s market cap.