CommonWealth REIT (CWH): Corvex Capital Has A New Position

A market-moving update, Keith Meister’s Corvex Capital purchased 10,885,145.8571 shares of CommonWealth REIT (NYSE:CWH) reported in a 13D filing with the Securities and Exchange Commission. In total, the holding in CommonWealth REIT (NYSE:CWH) is now worth about $244.9 million. This is a new position.

In investment circles, 13Ds reveal the intentions of activist investors. These members of the smart money are the most widely covered in the financial world, and seek to take a brush stroke to an already standing corporation.

In other words, it’s very beneficial for average investors to understand Keith Meister’s latest investment into CommonWealth REIT (NYSE:CWH).

Though it is important to pay attention to a lot of equity-based metrics, there’s one that is particularly important: consensus hedge fund sentiment.

Quantitative analyses have demonstrated that retail investors who follow specific hedge fund activity can outperform the broader indices by an average of 18 percentage points each year (see the details here)

Focusing on CommonWealth REIT (NYSE:CWH), our records indicate that 19 other hedge funds were long CommonWealth REIT (NYSE:CWH) at the end of last quarter. In particular, Christian Leone’s, Luxor Capital Group with 6,309,268 shares,Jim Simons’ Renaissance Technologies with 286,475 shares and David Abrams’ Abrams Capital Management holding 2,111,931 shares, were invested in CommonWealth REIT (NYSE:CWH), which is some of the top peers a money manager can be in the same room as.

Just as important, we should mention some other holdings in Corvex Capital‘s equity portfolio in addition to CommonWealth REIT (NYSE:CWH).

As follows, they include Google Inc (NASDAQ:GOOG), Corrections Corp Of America (NYSE:CXW), and Express Scripts Holding Company (NASDAQ:ESRX), and are discussed on the following page:

Keith Meister’s fund holds 80,000 shares in Google Inc (NASDAQ:GOOG), the value of the stake being almost $56.8 million. Also Corvex Capital owns 2,882,308 shares of Corrections Corp Of America (NYSE:CXW) and 1,048,000 shares of Express Scripts Holding Company (NASDAQ:ESRX), the value of the stakes being estimated at $102.2 million and $56.6 million respectively.

With this in mind, we’ll keep you updated about the smart money’s sentiment around CommonWealth REIT (NYSE:CWH).

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