Hedge Funds Are Selling Rouse Properties Inc (RSE)

How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don’t always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Rouse Properties Inc (NYSE:RSE).

Rouse Properties Inc (NYSE:RSE) shareholders have witnessed a decrease in hedge fund interest lately. RSE was in 11 hedge funds’ portfolios at the end of September. There were 12 hedge funds in our database with RSE positions at the end of the previous quarter. At the end of this article we will also compare RSE to other stocks including Babcock & Wilcox Enterprises Inc (NYSE:BW), Starwood Waypoint Residential Trust (NYSE:SWAY), and Solaredge Technologies Inc (NASDAQ:SEDG) to get a better sense of its popularity.

With all of this in mind, let’s take a look at the latest action surrounding Rouse Properties Inc (NYSE:RSE).

Hedge fund activity in Rouse Properties Inc (NYSE:RSE)

At Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of -8% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Murray Stahl’s Horizon Asset Management has the largest position in Rouse Properties Inc (NYSE:RSE), worth close to $41.5 million, accounting for 0.8% of its total 13F portfolio. The second most bullish fund manager is Chuck Royce of Royce & Associates, with a $14.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism encompass Jay Petschek and Steven Major’s Corsair Capital Management, Jim Simons’s Renaissance Technologies and Bill Miller’s Legg Mason Capital Management.