Do Hedge Funds and Insiders Love Northstar Realty Finance Corp. (NYSE:NRF)?

Is Northstar Realty Finance Corp. (NYSE:NRF) an outstanding investment today? The best stock pickers are getting more optimistic. The number of long hedge fund bets moved up by 11 recently.

In the eyes of most shareholders, hedge funds are assumed to be slow, old financial tools of years past. While there are over 8000 funds in operation today, we hone in on the leaders of this club, close to 450 funds. Most estimates calculate that this group controls the lion’s share of all hedge funds’ total capital, and by watching their highest performing equity investments, we have determined a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Northstar Realty Finance Corp. (NYSE:NRF)

Equally as key, bullish insider trading activity is a second way to break down the investments you’re interested in. Just as you’d expect, there are lots of stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would buy. Many academic studies have demonstrated the market-beating potential of this method if “monkeys” know where to look (learn more here).

With these “truths” under our belt, let’s take a gander at the latest action encompassing Northstar Realty Finance Corp. (NYSE:NRF).

How have hedgies been trading Northstar Realty Finance Corp. (NYSE:NRF)?

At the end of the fourth quarter, a total of 19 of the hedge funds we track were long in this stock, a change of 138% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes considerably.

Of the funds we track, Brookside Capital, managed by Bain Capital, holds the most valuable position in Northstar Realty Finance Corp. (NYSE:NRF). Brookside Capital has a $43 million position in the stock, comprising 1% of its 13F portfolio. The second largest stake is held by Anand Parekh of Alyeska Investment Group, with a $34 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Other peers with similar optimism include Steven Cohen’s SAC Capital Advisors, Jim Simons’s Renaissance Technologies and Malcolm Fairbairn’s Ascend Capital.

As one would reasonably expect, specific money managers were leading the bulls’ herd. Brookside Capital, managed by Bain Capital, established the biggest position in Northstar Realty Finance Corp. (NYSE:NRF). Brookside Capital had 43 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $21 million investment in the stock during the quarter. The other funds with new positions in the stock are Malcolm Fairbairn’s Ascend Capital, Cliff Asness’s AQR Capital Management, and Bruce Kovner’s Caxton Associates LP.

What do corporate executives and insiders think about Northstar Realty Finance Corp. (NYSE:NRF)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past half-year. Over the last 180-day time period, Northstar Realty Finance Corp. (NYSE:NRF) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns shown by the aforementioned research, retail investors should always keep an eye on hedge fund and insider trading activity, and Northstar Realty Finance Corp. (NYSE:NRF) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!