Is ARMOUR Residential REIT, Inc. (ARR) Going to Burn These Hedge Funds?

Page 1 of 2

If you were to ask many market players, hedge funds are assumed to be delayed, outdated financial tools of a period lost to current times. Although there are over 8,000 hedge funds with their doors open in present day, Insider Monkey focuses on the aristocrats of this club, about 525 funds. It is widely held that this group controls the majority of the hedge fund industry’s total capital, and by tracking their highest quality stock picks, we’ve figured out a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Equally as useful, bullish insider trading sentiment is a second way to analyze the stock market universe. Just as you’d expect, there are plenty of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).

Thus, we’re going to study the latest info for ARMOUR Residential REIT, Inc. (NYSE:ARR).

ARMOUR Residential REIT, Inc. (NYSE:ARR)

How have hedgies been trading ARMOUR Residential REIT, Inc. (NYSE:ARR)?

At Q2′s end, a total of 11 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes considerably.

Out of the hedge funds we follow, Pine River Capital Management, managed by Brian Taylor, holds the largest position in ARMOUR Residential REIT, Inc. (NYSE:ARR). Pine River Capital Management has a $49.1 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Corvex Capital, managed by Keith Meister, which held a $13.5 million position; 0.3% of its 13F portfolio is allocated to the company. Other peers that are bullish include Nathaniel August’s Mangrove Partners, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.

As ARMOUR Residential REIT, Inc. (NYSE:ARR) has experienced a fall in interest from upper-tier hedge fund managers, logic holds that there were a few money managers who were dropping their entire stakes heading into Q2. It’s worth mentioning that J. Alan Reid, Jr.’s Forward Management sold off the largest investment of the 450+ funds we watch, worth about $0.5 million in stock, and David Costen Haley of HBK Investments was right behind this move, as the fund dumped about $0.4 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading ARMOUR Residential REIT, Inc. (NYSE:ARR)?

Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, ARMOUR Residential REIT, Inc. (NYSE:ARR) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to ARMOUR Residential REIT, Inc. (NYSE:ARR). These stocks are Colonial Properties Trust Inc (NYSE:CLP), Mid America Apartment Communities Inc (NYSE:MAA), CYS Investments Inc (NYSE:CYS), Hatteras Financial Corp. (NYSE:HTS), and Post Properties Inc (NYSE:PPS). This group of stocks belong to the reit – residential industry and their market caps are similar to ARR’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!