Hedge Funds Are Dumping American Residential Properties Inc (ARPI)

Due to the fact that American Residential Properties Inc (NYSE:ARPI) has experienced falling interest from the aggregate hedge fund industry, we can see that there were a few hedge funds who were dropping their full holdings last quarter. At the top of the heap, Richard Driehaus’ Driehaus Capital cut the biggest stake of all the hedgies followed by Insider Monkey, valued at an estimated $4.1 million in stock. Rod Hinze’s fund, KeyPoint Capital Management, also dropped its stock, about $3.5 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 4 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as American Residential Properties Inc (NYSE:ARPI) but similarly valued. We will take a look at TrustCo Bank Corp NY (NASDAQ:TRST), Air Transport Services Group Inc. (NASDAQ:ATSG), Sapiens International Corporation N.V. (NASDAQ:SPNS), and Bryn Mawr Bank Corp. (NASDAQ:BMTC). All of these stocks’ market caps resemble American Residential Properties Inc (NYSE:ARPI)’s market cap.

As you can see, these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $145 million in American Residential Properties Inc (NYSE:ARPI)’s case. Air Transport Services Group Inc. (NASDAQ:ATSG) is the most popular stock in this table. On the other hand, TrustCo Bank Corp NY (NASDAQ:TRST) is the least popular one with only an 8 bullish hedge fund positions. American Residential Properties Inc (NYSE:ARPI) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Air Transport Services Group Inc. (NASDAQ:ATSG) might be a better candidate to consider a long position.