At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost Group, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long-term due to the fact that these companies are less efficiently priced and are usually under the radars of the mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
Is Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) the right investment to pursue these days? Prominent investors are taking a pessimistic view. The number of bullish hedge fund bets shrunk by one recently. Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) was in 12 hedge funds’ portfolios at the end of September. There were 13 hedge funds in our database with Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) holdings at the end of the previous quarter. At the end of this article, we will also compare Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) to other stocks including Flexsteel Industries, Inc. (NASDAQ:FLXS), Tokai Pharmaceuticals Inc (NASDAQ:TKAI), and MCBC Holdings Inc (NASDAQ:MCFT) to get a better sense of its popularity.
Follow Bluerock Residential Growth Reit Inc. (NYSE:BRG)
Follow Bluerock Residential Growth Reit Inc. (NYSE:BRG)
In today’s marketplace there are a multitude of formulas stock market investors use to size up their stock investments. A duo of the most innovative formulas are hedge fund and insider trading sentiment. our researchers have shown that, historically, those who follow the top picks of the elite investment managers can trounce the S&P 500 by a solid margin (see the details here).
Keeping this in mind, let’s go over the key action surrounding Bluerock Residential Growth REIT Inc (NYSEMKT:BRG).
What have hedge funds been doing with Bluerock Residential Growth REIT Inc (NYSEMKT:BRG)?
At the end of the third quarter, a total of 12 of the hedge funds tracked by Insider Monkey were bullish in this stock, a drop of 8% from the second quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investors’ holdings data compiled by Insider Monkey, Ardsley Partners, managed by Philip Hempleman, holds the largest position in Bluerock Residential Growth REIT Inc (NYSEMKT:BRG). Ardsley Partners has a $6.3 million position in the stock, comprising 1.5% of its 13F portfolio. The second-largest stake is held by Steve Pei of Gratia Capital, with a $2.9 million position; 0.5% of his fund’s 13F portfolio is allocated to the company. Some other members of the smart money that hold long positions encompass Renaissance Technologies, Amy Minella’s Cardinal Capital, and John Thiessen’s Vertex One Asset Management.
Since Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) has witnessed declining sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few fund managers that elected to cut their entire stakes heading into Q4. It’s worth mentioning that Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital dumped the largest investment of the 700 funds monitored by Insider Monkey, valued at about $2.3 million in stock. Geoffrey Raynor’s fund, Q Investments (Specter Holdings), also sold off its stock, about $1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by one fund heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) but similarly valued. These stocks are Flexsteel Industries, Inc. (NASDAQ:FLXS), Tokai Pharmaceuticals Inc (NASDAQ:TKAI), MCBC Holdings Inc (NASDAQ:MCFT), and Mazor Robotics Ltd – ADR (NASDAQ:MZOR). This group of stocks’ market caps resemble Bluerock Residential Growth REIT Inc (NYSEMKT:BRG)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FLXS | 5 | 3414 | 0 |
| TKAI | 7 | 23972 | 0 |
| MCFT | 7 | 143621 | 7 |
| MZOR | 6 | 18336 | 2 |
As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $47 million. That figure was $23 millions in Bluerock Residential Growth REIT Inc (NYSEMKT:BRG)’s case. Tokai Pharmaceuticals Inc (NASDAQ:TKAI) is the most popular stock in this table. On the other hand, Flexsteel Industries, Inc. (NASDAQ:FLXS) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) is more popular among hedge funds. Considering that hedge funds are fond of this stock relative to similarly-sized companied, it may be a good idea to analyze it in detail and potentially include it in your portfolio, particularly if you’re looking for a solid dividend-paying stock.
