Both Insiders and Hedge Funds Seem to Love American Realty Capital Properties (ARCP)

Last week, two insiders at American Realty Capital Properties Inc (NASDAQ:ARCP) acquired stock from the company. On Jan. 14th, Brian Block, Executive Vice President, Treasurer, Secretary and Chief Financial Officer, acquired* 4,000 shares of Series F Cumulative Redeemable Preferred Stock at a price of $20.59 per share. In addition to these shares, Mr. Block directly owns 894,694 shares of Common Stock and an extra 5,159 shares of Series F Cumulative Redeemable Preferred Stock.

A few days later, on Jan. 17th, Leslie Michelson, Board Director, acquired 6,900 American Realty Capital Properties Inc (NASDAQ:ARCP) shares of Common Stock in two separate transactions. On the one hand, he acquired 5,500 shares at a price of $13.5399 per share, increasing his holdings to 51,500 shares. In addition, Mr. Michelson bought 1,400 shares for $13.48 each, which are now held by an immediate family member.

David Simon


Both purchases follow a couple of 8-K forms filed at the U.S. Securities and Exchange Commission “regarding the settlement of certain litigation relating to, among other things, the Agreement and Plan of Merger” (Sec.gov) with Cole Real Estate Investments, Inc. This is quite understandable, since new opportunities will unlock as soon as the merger goes through, which could certainly make the stock price rise.

However, even before these forms were filed, American Realty Capital Properties Inc (NASDAQ:ARCP) witnessed strong insider activity. Since the beginning of 2014, at least 6 other insiders, including the company´s Chief Executive Officer, Chief Investment Officer and President, in addition to several Board Directors, added stock to their portfolios.

Furthermore, it is not only insiders that are betting on American Realty Capital Properties Inc (NASDAQ:ARCP). David Simon's Twin Capital Management in its latest 13F showed that it had increased its position in the company by more than 50% and now owns 5,724,867 shares (which comprises about 19% of its total holdings). Another fund that seems to feel bullish about this company is Jay Petschek and Steven Major's Corsair Capital Management, which also upped its stakes lately (by more than 40%) and now owns 2,644,126 shares, which account for more than 4% of its portfolio´s value.

In addition, several major hedge funds like Ken Griffin's Citadel Investment Group and D. E. Shaw hold company bonds worth several million dollars.

* “Purchased by spouse as trustee of trust for the benefit of the reporting person's children.” (Sec.gov)

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

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