How Has Smart Money Been Trading QTS Realty Trust Inc (QTS)?

Due to the fact that QTS Realty Trust Inc (NYSE:QTS) has experienced a bearish sentiment from the smart money, logic holds that there lies a certain “tier” of money managers who were dropping their full holdings in the third quarter. It’s worth mentioning that Anand Parekh’s Alyeska Investment Group cut the biggest investment of the “upper crust” of funds tracked by Insider Monkey, valued at an estimated $14.3 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $4.2 million worth of shares. These moves are important to note, as aggregate hedge fund interest fell by 6 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as QTS Realty Trust Inc (NYSE:QTS) but similarly valued. We will take a look at Endurance International Group Hldgs Inc (NASDAQ:EIGI), Pinnacle Financial Partners (NASDAQ:PNFP), Silicon Laboratories (NASDAQ:SLAB), and CVB Financial Corp. (NASDAQ:CVBF). This group of stocks’ market valuations are similar to QTS’s market valuation.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $58 million, slightly higher than the $50 million figure in QTS’s case. Endurance International Group Hldgs Inc (NASDAQ:EIGI) is the most popular stock in this table. On the other hand, CVB Financial Corp. (NASDAQ:CVBF) is the least popular one with only 5 bullish hedge fund positions. QTS Realty Trust Inc (NYSE:QTS) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard EIGI might be a better candidate to consider a long position.