Levin Capital Strategies Raises Exposure to New Senior Investment Group Inc (SNR)

John Levin’s Levin Capital Strategies has disclosed a 5.38% activist stake in New Senior Investment Group Inc (NYSE:SNR). According to a recent 13D filing, Levin Capital Strategies beneficially owns 4.51 million shares of the real estate investment trust along with John Levin holding 1.10 million shares. In its latest 13F, Levin disclosed ownership of 3.81 million shares. Even though the stake is activist, the investor stated that it currently has no plans or proposals regarding New Senior Investment Group Inc (NYSE:SNR).

John Levin founded the investment firm in 2005 and the investment manager has its primary investments in large cap stocks. The fund manager uses fundamental analysis to analyze the value of a business and make an investment accordingly. As of the end of the first quarter, Levin Capital Strategies reported an equity portfolio of $6.68 billion, with the top 10 holdings accounting for 36.76% of the overall portfolio value. The fund invests in finance, industrial, healthcare, and information technology sectors, while its top three holdings are represented by Citigroup Inc (NYSE:C), Pfizer Inc. (NYSE:PFE), Eaton Corp plc (NYSE:ETN).

At Insider Monkey, we track hedge funds’ moves in order to identify actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically delivered a monthly alpha of six basis points, though these stocks underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 95 basis points per month (read more details here). Since the official launch of our small-cap strategy in August 2012, it has performed just as predicted, returning over 123% and beating the market by more than 65 percentage points. We believe the data is clear: investors will be better off by focusing on small-cap stocks utilizing hedge fund expertise rather than large-cap stocks.

New Senior Investment Group Inc (NYSE:SNR) is a real estate investment trust with a portfolio of senior housing properties. It had 121 senior housing properties spread across 31 states in its portfolio as of March 31, 2015. These properties include 77 independent-living properties, 40 assisted living properties, and four continuing care retirement communities. New Senior Investment Group Inc (NYSE:SNR) has yet to disclose its financial results for the second quarter, while The Wall Street expects earnings per share of $0.34 on revenue of $87.30 million.