Is Forestar Group Inc. (FOR) A Good Stock To Invest In?

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As one would reasonably expect, key hedge funds have jumped into Forestar Group Inc. (NYSE:FOR) headfirst. Cove Street Capital established the largest position in Forestar Group Inc. (NYSE:FOR). Ionic Capital Management also initiated a $4.6 million position during the quarter. The other funds with new positions in the stock are Daniel Beltzman and Gergory Smith’s Birch Run Capital and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Forestar Group Inc. (NYSE:FOR) but similarly valued. These stocks are Ashford Hospitality Prime Inc (NYSE:AHP), World Acceptance Corp. (NASDAQ:WRLD), Haynes International, Inc. (NASDAQ:HAYN), and NewStar Financial Inc (NASDAQ:NEWS). This group of stocks’ market values match FOR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AHP 12 144264 2
WRLD 11 29434 1
HAYN 8 43566 1
NEWS 4 118119 0

As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $84 million, compared to $110 million in FOR’s case. Ashford Hospitality Prime Inc (NYSE:AHP) is the most popular stock in this table. On the other hand NewStar Financial Inc (NASDAQ:NEWS) is the least popular one with only four bullish hedge fund positions. Compared to these stocks Forestar Group Inc. (NYSE:FOR) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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Disclosure: None




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