Is Digital Realty Trust, Inc. (DLR) Worthy of Your Portfolio?

Because Digital Realty Trust, Inc. (NYSE:DLR) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few money managers who sold off their full holdings heading into fourth quarter. At the top of the heap, Stuart J. Zimmer’s Zimmer Partners dropped the biggest position of all the investors monitored by Insider Monkey, valued at an estimated $16.3 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $5.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Digital Realty Trust, Inc. (NYSE:DLR). We will take a look at DaVita HealthCare Partners Inc (NYSE:DVA), Goldcorp Inc. (USA) (NYSE:GG), CenturyLink, Inc. (NYSE:CTL), and Expedia Inc (NASDAQ:EXPE). All of these stocks’ market caps match DLR’s market cap.

As you can see these stocks had an average of 38 investors with bullish positions and the average amount invested in these stocks was $2.22 billion. That figure was $175 million in DLR’s case. Expedia Inc (NASDAQ:EXPE) is the most popular stock in this table and Goldcorp Inc. (USA) (NYSE:GG) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks Digital Realty Trust, Inc. (NYSE:DLR) is even less popular than Goldcorp Inc. (USA) (NYSE:GG). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None