UDR, Inc. (UDR): Hedge Funds Aren’t Crazy About It, Insider Sentiment Unchanged
What's a smart UDR, Inc. (NYSE:UDR) investor to do?
At the moment, there are dozens of gauges market participants can use to monitor Mr. Market. Some of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outperform their index-focused peers by a solid margin (see just how much).
Just as key, optimistic insider trading activity is another way to analyze the financial markets. Just as you'd expect, there are plenty of reasons for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).
What's more, let's analyze the newest info for UDR, Inc. (NYSE:UDR).
What have hedge funds been doing with UDR, Inc. (NYSE:UDR)?
In preparation for the third quarter, a total of 8 of the hedge funds we track were long in this stock, a change of -11% from the previous quarter. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Carlson Capital, managed by Clint Carlson, holds the most valuable position in UDR, Inc. (NYSE:UDR). Carlson Capital has a $5.3 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $4.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include J. Alan Reid Jr.'s Forward Management, and Cliff Asness's AQR Capital Management.
Judging by the fact that UDR, Inc. (NYSE:UDR) has faced declining interest from the top-tier hedge fund industry, it's safe to say that there lies a certain "tier" of money managers that slashed their positions entirely in Q1. Interestingly, Ken Gray and Steve Walsh's Bryn Mawr Capital cut the biggest stake of all the hedgies we monitor, comprising close to $17.9 million in stock. D. E. Shaw's fund, D E Shaw, also said goodbye to its stock, about $2.4 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 1 funds in Q1.
How have insiders been trading UDR, Inc. (NYSE:UDR)?
Insider buying made by high-level executives is most useful when the company we're looking at has experienced transactions within the past six months. Over the latest six-month time period, UDR, Inc. (NYSE:UDR) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to UDR, Inc. (NYSE:UDR). These stocks are Two Harbors Investment Corp (NYSE:TWO), American Campus Communities, Inc. (NYSE:ACC), Senior Housing Properties Trust (NYSE:SNH), Essex Property Trust Inc (NYSE:ESS), and Camden Property Trust (NYSE:CPT). This group of stocks are in the reit - residential industry and their market caps match UDR's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Two Harbors Investment Corp (NYSE:TWO)
American Campus Communities, Inc. (NYSE:ACC)
Senior Housing Properties Trust (NYSE:SNH)
Essex Property Trust Inc (NYSE:ESS)
Camden Property Trust (NYSE:CPT)
Using the returns explained by our tactics, average investors must always watch hedge fund and insider trading activity, and UDR, Inc. (NYSE:UDR) applies perfectly to this mantra.