At Insider Monkey we follow around 730 of the best-performing investors and even though many of them lost money in the last several months, history teaches us that over the long-run they still manage to beat the market, which is why it can be profitable for us to imitate their activity. Of course, even the best money managers can sometimes get it wrong, but following some of their picks gives us a better chance to outperform the crowd than picking a random stock, and this is where our research comes in.
Is Silver Bay Realty Trust Corp (NYSE:SBY) a buy? Prominent investors don’t seem to think so. The number of long hedge fund bets retreated by 4 recently. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as MakeMyTrip Limited (NASDAQ:MMYT), Universal American Corporation (NYSE:UAM), and EDENOR S.A. (ADR) (NYSE:EDN) to gather more data points.
Follow Silver Bay Realty Trust Corp. (NYSE:SBY)
Follow Silver Bay Realty Trust Corp. (NYSE:SBY)
At the moment there are tons of methods investors put to use to evaluate publicly traded companies. A duo of the most under-the-radar methods are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the top hedge fund managers can outpace the S&P 500 by a superb margin (see the details here).
Keeping this in mind, we’re going to take a peek at the recent action surrounding Silver Bay Realty Trust Corp (NYSE:SBY).
What have hedge funds been doing with Silver Bay Realty Trust Corp (NYSE:SBY)?
At the end of the third quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a 25% fall from the previous quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Ken Griffin’s Citadel Investment Group has the most valuable position in Silver Bay Realty Trust Corp (NYSE:SBY), worth close to $29.8 million, amounting to less than 0.1% of its total 13F portfolio. The second-most bullish fund is Renaissance Technologies, with a $24 million position; 0.1% of its 13F portfolio is allocated to the company. Some other professional money managers that are bullish contain Dmitry Balyasny’s Balyasny Asset Management, Israel Englander’s Millennium Management, and D E Shaw.
Because Silver Bay Realty Trust Corp (NYSE:SBY) has experienced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedgies that decided to sell off their positions entirely last quarter. It’s worth mentioning that John Khoury’s Long Pond Capital sold off the biggest investment of the 700 funds monitored by Insider Monkey, valued at about $18.6 million in stock. Eric Halet and Davide Serra’s fund, Algebris Investments, also said goodbye to its stock, about $1.3 million worth. These moves are important to note, as total hedge fund interest fell by 4 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to Silver Bay Realty Trust Corp (NYSE:SBY). We will take a look at MakeMyTrip Limited (NASDAQ:MMYT), Universal American Corporation (NYSE:UAM), EDENOR S.A. (ADR) (NYSE:EDN), and Arcos Dorados Holding Inc (NYSE:ARCO). This group of stocks’ market valuations resemble Silver Bay Realty Trust Corp’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MMYT | 12 | 89006 | -5 |
| UAM | 11 | 166975 | -3 |
| EDN | 4 | 13522 | -2 |
| ARCO | 7 | 17236 | 3 |
As you can see these stocks had an average of 8.5 hedge funds with bullish positions and the average amount invested in these stocks was $72 million. That figure was also $72 million in Silver Bay Realty Trust Corp’s case. MakeMyTrip Limited (NASDAQ:MMYT) is the most popular stock in this table. On the other hand EDENOR S.A. (ADR) (NYSE:EDN) is the least popular one with only 4 bullish hedge fund positions. Silver Bay Realty Trust Corp (NYSE:SBY) is tied for the most popular stock, though it has less money invested in it than MakeMyTrip. However, we’d rather spend our time researching stocks that hedge funds are pouring money into as well. In this regard Universal American Corporation might be a better candidate to consider a long position.
