Is Government Properties Income Trust (GOV) Going to Burn These Hedge Funds?

We already know that not all hedge funds are bullish on Government Properties Income Trust (NASDAQ:GOV) and some hedge funds actually cashed in their positions entirely. Intriguingly, D. E. Shaw’s D E Shaw cashed in the biggest investment of the 700 funds watched by Insider Monkey, comprising close to $1.1 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, about $0.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Government Properties Income Trust (NASDAQ:GOV) but similarly valued. We will take a look at Pennsylvania R.E.I.T. (NYSE:PEI), WD-40 Company (NASDAQ:WDFC), Portfolio Recovery Associates, Inc. (NASDAQ:PRAA), and Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV). This group of stocks’ market valuations resemble GOV’s market valuation.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $90 million in GOV’s case. Pennsylvania R.E.I.T. (NYSE:PEI) is the most popular stock in this table. On the other hand Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV) is the least popular one with only 3 bullish hedge fund positions. Government Properties Income Trust (NASDAQ:GOV) 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 PEI might be a better candidate to consider taking a long position in.

Disclosure: none.