Spirit Realty Capital Inc (NYSE:SRC) was in 17 hedge funds’ portfolio at the end of the fourth quarter of 2012. SRC shareholders have witnessed an increase in hedge fund sentiment in recent months. There were 1 hedge funds in our database with SRC positions at the end of the previous quarter.
At the moment, there are dozens of indicators shareholders can use to monitor the equity markets. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the broader indices by a significant amount (see just how much).
Just as integral, positive insider trading activity is another way to break down the investments you’re interested in. As the old adage goes: there are many stimuli for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if “monkeys” understand what to do (learn more here).
Consequently, we’re going to take a glance at the recent action regarding Spirit Realty Capital Inc (NYSE:SRC).
How are hedge funds trading Spirit Realty Capital Inc (NYSE:SRC)?
Heading into 2013, a total of 17 of the hedge funds we track held long positions in this stock, a change of 1600% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, TPG-AXON Management LP, managed by Dinakar Singh, holds the most valuable position in Spirit Realty Capital Inc (NYSE:SRC). TPG-AXON Management LP has a $117 million position in the stock, comprising 6% of its 13F portfolio. Sitting at the No. 2 spot is Thomas Lenox Kempner of Davidson Kempner, with a $78 million position; 6% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include James Dondero’s Highland Capital Management, Michael A. Price and Amos Meron’s Empyrean Capital Partners and Daniel S. Och’s OZ Management.
Consequently, key money managers were leading the bulls’ herd. TPG-AXON Management LP, managed by Dinakar Singh, initiated the largest position in Spirit Realty Capital Inc (NYSE:SRC). TPG-AXON Management LP had 117 million invested in the company at the end of the quarter. Thomas Lenox Kempner’s Davidson Kempner also made a $78 million investment in the stock during the quarter. The other funds with new positions in the stock are James Dondero’s Highland Capital Management, Michael A. Price and Amos Meron’s Empyrean Capital Partners, and Daniel S. Och’s OZ Management.
How have insiders been trading Spirit Realty Capital Inc (NYSE:SRC)?
Insider buying is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time period, Spirit Realty Capital Inc (NYSE:SRC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns exhibited by the aforementioned studies, everyday investors must always monitor hedge fund and insider trading activity, and Spirit Realty Capital Inc (NYSE:SRC) is no exception.
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