Oh, to be an mREIT investor. Aside from having the annoying fact that 90% of “experts” will tell you to buy or sell a company based on P/E ratios instead of FFO metrics, you’ve got Ben Bernanke to worry about. Regardless, American Capital Mortgage Investment Crp (NASDAQ:MTGE) is one mREIT that we have some extra data on, if you will. Check it out below.
If you were to ask many market players, hedge funds are viewed as delayed, outdated investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site looks at the aristocrats of this group, close to 525 funds. Analysts calculate that this group has its hands on most of the hedge fund industry’s total capital, and by monitoring their best equity investments, we’ve identified a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as necessary, positive insider trading activity is another way to analyze the stock market universe. As the old adage goes: there are plenty of motivations for an executive to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if “monkeys” know what to do (learn more here).
Thus, it’s important to discuss the newest info surrounding American Capital Mortgage Investment Crp (NASDAQ:MTGE).
Hedge fund activity in American Capital Mortgage Investment Crp (NASDAQ:MTGE)
In preparation for the third quarter, a total of 19 of the hedge funds we track were bullish in this stock, a change of 6% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes substantially.
According to our 13F database, Brian Taylor’s Pine River Capital Management had the biggest position in American Capital Mortgage Investment Crp (NASDAQ:MTGE), worth close to $63 million, comprising 1% of its total 13F portfolio. On Pine River Capital Management’s heels is Ascend Capital, managed by Malcolm Fairbairn, which held a $24.5 million position; the fund has 1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Israel Englander’s Millennium Management, Andy Redleaf’s Whitebox Advisors and John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co.
As industrywide interest increased, particular hedge funds were breaking ground themselves. Pine River Capital Management, managed by Brian Taylor, created the most valuable position in American Capital Mortgage Investment Crp (NASDAQ:MTGE). Pine River Capital Management had 63 million invested in the company at the end of the quarter. Malcolm Fairbairn’s Ascend Capital also made a $24.5 million investment in the stock during the quarter. The other funds with brand new MTGE positions are Israel Englander’s Millennium Management, Andy Redleaf’s Whitebox Advisors, and John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co.
How have insiders been trading American Capital Mortgage Investment Crp (NASDAQ:MTGE)?
Legal insider trading, particularly when it’s bullish, is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time period, American Capital Mortgage Investment Crp (NASDAQ:MTGE) has seen 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to American Capital Mortgage Investment Crp (NASDAQ:MTGE). These stocks are PS Business Parks Inc (NYSE:PSB), Capstead Mortgage Corporation (NYSE:CMO), Redwood Trust, Inc. (NYSE:RWT), Colony Financial Inc (NYSE:CLNY), and Spirit Realty Capital Inc (NYSE:SRC). This group of stocks are in the reit – diversified industry and their market caps are similar to MTGE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| PS Business Parks Inc (NYSE:PSB) | 11 | 1 | 5 |
| Capstead Mortgage Corporation (NYSE:CMO) | 7 | 2 | 2 |
| Redwood Trust, Inc. (NYSE:RWT) | 16 | 0 | 0 |
| Colony Financial Inc (NYSE:CLNY) | 15 | 1 | 0 |
| Spirit Realty Capital Inc (NYSE:SRC) | 15 | 0 | 0 |
Using the results shown by the previously mentioned studies, regular investors should always keep one eye on hedge fund and insider trading activity, and American Capital Mortgage Investment Crp (NASDAQ:MTGE) shareholders fit into this picture quite nicely.
