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Hedge Funds Are Crazy About Arbor Realty Trust, Inc. (ABR)

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Arbor Realty Trust, Inc. (NYSE:ABR) was in 12 hedge funds’ portfolio at the end of March. ABR investors should be aware of an increase in hedge fund sentiment of late. There were 5 hedge funds in our database with ABR positions at the end of the previous quarter.

If you’d ask most traders, hedge funds are viewed as worthless, old investment vehicles of yesteryear. While there are greater than 8000 funds with their doors open today, we at Insider Monkey hone in on the elite of this club, close to 450 funds. It is widely believed that this group oversees most of the hedge fund industry’s total asset base, and by watching their highest performing stock picks, we have spotted a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy beat 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 outclassed the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).

Just as beneficial, bullish insider trading activity is a second way to break down the marketplace. There are plenty of stimuli for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this tactic if “monkeys” understand where to look (learn more here).

Consequently, let’s take a glance at the key action surrounding Arbor Realty Trust, Inc. (NYSE:ABR).

How are hedge funds trading Arbor Realty Trust, Inc. (NYSE:ABR)?

At the end of the first quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 140% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes substantially.

Arbor Realty Trust Inc. (ABR)According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the largest position in Arbor Realty Trust, Inc. (NYSE:ABR). Royce & Associates has a $2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Brian Taylor of Pine River Capital Management, with a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include J. Alan Reid, Jr.’s Forward Management, Jim Simons’s Renaissance Technologies and Ken Griffin’s Citadel Investment Group.

As industrywide interest jumped, some big names have jumped into Arbor Realty Trust, Inc. (NYSE:ABR) headfirst. Royce & Associates, managed by Chuck Royce, assembled the most valuable position in Arbor Realty Trust, Inc. (NYSE:ABR). Royce & Associates had 2 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also made a $2 million investment in the stock during the quarter. The following funds were also among the new ABR investors: Jim Simons’s Renaissance Technologies, John Fichthorn’s Dialectic Capital Management, and Cliff Asness’s AQR Capital Management.

What do corporate executives and insiders think about Arbor Realty Trust, Inc. (NYSE:ABR)?

Insider buying is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time frame, Arbor Realty Trust, Inc. (NYSE:ABR) has experienced 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Arbor Realty Trust, Inc. (NYSE:ABR). These stocks are UMH Properties, Inc (NYSE:UMH), One Liberty Properties, Inc. (NYSE:OLP), Gramercy Capital Corp. (NYSE:GKK), Whitestone REIT (NYSE:WSR), and Gladstone Commercial Corporation (NASDAQ:GOOD). All of these stocks are in the reit – diversified industry and their market caps are closest to ABR’s market cap.

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