Hedge Funds Are Betting On Lexington Realty Trust (LXP)

Now, key hedge funds were breaking ground themselves. Echo Street Capital Management, led by Greg Poole, established the most outsized position in Lexington Realty Trust (NYSE:LXP). Echo Street Capital Management had $1.7 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.2 million position during the quarter. The other funds with new positions in the stock are Matthew Tewksbury’s Stevens Capital Management and Dmitry Balyasny’s Balyasny Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lexington Realty Trust (NYSE:LXP) but similarly valued. We will take a look at Lexmark International Inc (NYSE:LXK), United Natural Foods, Inc. (NASDAQ:UNFI), The Medicines Company (NASDAQ:MDCO), and SolarCity Corp (NASDAQ:SCTY). All of these stocks’ market caps match LXP’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $283 million. That figure was $54 million in LXP’s case. The Medicines Company (NASDAQ:MDCO) is the most popular stock in this table. On the other hand SolarCity Corp (NASDAQ:SCTY) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Lexington Realty Trust (NYSE:LXP) is even less popular than SCTY. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None