What Does The Smart Money Think of Biomed Realty Trust Inc (BMR)?

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Biomed Realty Trust Inc (NYSE:BMR) in this article.

Is Biomed Realty Trust Inc (NYSE:BMR) a buy right now? Money managers are in a bullish mood. The number of long hedge fund bets moved up by 6 lately. BMR was in 17 hedge funds’ portfolios at the end of the third quarter of 2015. There were 11 hedge funds in our database with BMR holdings at the end of the previous quarter. At the end of this article we will also compare BMR to other stocks including American Campus Communities, Inc. (NYSE:ACC), AGCO Corporation (NYSE:AGCO), and Credit Acceptance Corp. (NASDAQ:CACC) to get a better sense of its popularity.

If you’d ask most stock holders, hedge funds are perceived as underperforming, outdated investment vehicles of the past. While there are greater than 8000 funds in operation at the moment, Our researchers choose to focus on the leaders of this club, about 700 funds. These investment experts command bulk of all hedge funds’ total asset base, and by tailing their first-class investments, Insider Monkey has determined a number of investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

Now, we’re going to check out the key action encompassing Biomed Realty Trust Inc (NYSE:BMR).

What have hedge funds been doing with Biomed Realty Trust Inc (NYSE:BMR)?

Heading into Q4, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 55% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Jeffrey Furber’s AEW Capital Management has the most valuable position in Biomed Realty Trust Inc (NYSE:BMR), worth close to $55.9 million, comprising 1.3% of its total 13F portfolio. Coming in second is Fisher Asset Management, managed by Ken Fisher, which holds a $40.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish contain John Orrico’s Water Island Capital, Anand Parekh’s Alyeska Investment Group and Brian Newman and David Heller’s Cloud Gate Capital.

With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Water Island Capital, managed by John Orrico, initiated the largest position in Biomed Realty Trust Inc (NYSE:BMR). Water Island Capital had $30.8 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $10.9 million investment in the stock during the quarter. The following funds were also among the new BMR investors: D. E. Shaw’s D E Shaw, Chao Ku’s Nine Chapters Capital Management, and Dmitry Balyasny’s Balyasny Asset Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Biomed Realty Trust Inc (NYSE:BMR) but similarly valued. These stocks are American Campus Communities, Inc. (NYSE:ACC), AGCO Corporation (NYSE:AGCO), Credit Acceptance Corp. (NASDAQ:CACC), and Spirit Realty Capital, Inc (New) (NYSE:SRC). This group of stocks’ market valuations are closest to BMR’s market valuation.

As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $373 million. That figure was $223 million in BMR’s case. Spirit Realty Capital, Inc (New) (NYSE:SRC) is the most popular stock in this table. On the other hand American Campus Communities, Inc. (NYSE:ACC) is the least popular one with only 15 bullish hedge fund positions. Biomed Realty Trust Inc (NYSE:BMR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SRC might be a better candidate to consider a long position.