Is Alexandria Real Estate Equities Inc (ARE) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. Intriguingly, James Dondero’s Highland Capital Management got rid of the biggest position of all the investors studied by Insider Monkey, valued at an estimated $8.4 million in stock. Michael Platt and William Reeves’s fund, BlueCrest Capital Mgmt., also dumped its stock, about $0.6 million worth of Alexandria Real Estate Equities Inc (NYSE:ARE) shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Alexandria Real Estate Equities Inc (NYSE:ARE) but similarly valued. These stocks are The Goodyear Tire & Rubber Company (NASDAQ:GT), The AES Corporation (NYSE:AES), Pinnacle West Capital Corporation (NYSE:PNW), and Brookfield Infrastructure Partners L.P. (NYSE:BIP). This group of stocks’ market valuations resemble ARE’s market valuation.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $632 million. That figure was a minor $54 million in ARE’s case. The Goodyear Tire & Rubber Company (NASDAQ:GT) is the most popular stock in this table. On the other hand Brookfield Infrastructure Partners L.P. (NYSE:BIP) is the least popular one with only 6 bullish hedge fund positions. Alexandria Real Estate Equities Inc (NYSE:ARE) 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 GT might be a better candidate to consider taking a long position in.

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Disclosure: none.