How Smart Money Has Been Trading Terreno Realty Corporation (TRNO)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Springbok Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was PDT Partners).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Terreno Realty Corporation (NYSE:TRNO) but similarly valued. These stocks are PHH Corporation (NYSE:PHH), SkyWest, Inc. (NASDAQ:SKYW), Badger Meter, Inc. (NYSE:BMI), and Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS). This group of stocks’ market caps resemble TRNO’s market cap.

As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $121 million, compared to $16 million in TRNO’s case. PHH Corporation (NYSE:PHH) is the most popular stock in this table, while Badger Meter, Inc. (NYSE:BMI) is the least popular one with only 5 bullish hedge fund positions. Terreno Realty Corporation (NYSE:TRNO) 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 PHH might be a better candidate to consider a long position.