Between June 25 and October 30 the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Green Brick Partners Inc (NASDAQ:GRBK) and see how the stock is affected by the recent hedge fund activity.
Green Brick Partners Inc (NASDAQ:GRBK) investors should be aware of a decrease in support from the world’s most elite money managers of late. Green Brick Partners Inc was in 10 hedge funds’ portfolios at the end of the third quarter of 2015. There were 12 hedge funds in our database with Green Brick Partners Inc holdings at the end of the previous quarter. At the end of this article we will also compare Green Brick Partners Inc to other stocks including Western Asset Mortgage Capital Corp (NYSE:WMC), Getty Realty Corp. (NYSE:GTY), and Cedar Realty Trust Inc (NYSE:CDR) to get a better sense of its popularity.
In the 21st century investor’s toolkit there are dozens of metrics stock market investors can use to size up publicly traded companies. A pair of the best metrics are hedge fund and insider trading activity. We have shown that, historically, those who follow the best picks of the top investment managers can outpace the broader indices by a solid margin (see the details here).
With all of this in mind, we’re going to take a look at the new action encompassing Green Brick Partners Inc (NASDAQ:GRBK).
What have hedge funds been doing with Green Brick Partners Inc (NASDAQ:GRBK)?
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 17% drop from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings meaningfully (or had already accumulated large positions).
Of the funds tracked by Insider Monkey, Greenlight Capital, managed by David Einhorn, holds the biggest position in Green Brick Partners Inc (NASDAQ:GRBK). Greenlight Capital has a $261.2 million position in the stock, comprising 4.3% of its 13F portfolio. The second-most bullish fund is Third Point, managed by Dan Loeb, which holds an $87.2 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions encompass Rod Hinze’s KeyPoint Capital Management, Richard Driehaus’ Driehaus Capital, and Israel Englander’s Millennium Management.