Is Northstar Realty Europe Corp (NRE) Going to Burn These Hedge Funds?

Since Northstar Realty Europe Corp (NYSE:NRE) has encountered declining sentiment from the smart money, it’s easy to see that there were a few hedge funds that slashed their entire stakes by the end of the third quarter. Intriguingly, Michael Reeber’s Andalusian Capital Partners cashed in the biggest investment of the 700 funds tracked by Insider Monkey, worth close to $1.2 million in stock, and Andre F. Perold’s HighVista Strategies was right behind this move, as the fund dumped about $1 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Northstar Realty Europe Corp (NYSE:NRE). We will take a look at New York Mortgage Trust, Inc. (NASDAQ:NYMT), Manitowoc Company, Inc. (NYSE:MTW), Intra-Cellular Therapies Inc (NASDAQ:ITCI), and Weight Watchers International, Inc. (NYSE:WTW). This group of stocks’ market valuations resemble NRE’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $153 million in NRE’s case. Manitowoc Company, Inc. (NYSE:MTW) is the most popular stock in this table. On the other hand New York Mortgage Trust, Inc. (NASDAQ:NYMT) is the least popular one with only 3 bullish hedge fund positions. Northstar Realty Europe Corp (NYSE:NRE) 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 MTW might be a better candidate to consider taking a long position in.

Disclosure: None