Is Northstar Realty Finance Corp. (NRF) Going to Burn These Hedge Funds?

Page 1 of 2

Is Northstar Realty Finance Corp. (NYSE:NRF) a healthy stock for your portfolio? Prominent investors are becoming more confident. The number of long hedge fund bets advanced by 4 lately.

If you’d ask most stock holders, hedge funds are viewed as unimportant, old investment vehicles of the past. While there are over 8000 funds trading today, we choose to focus on the elite of this club, about 450 funds. It is estimated that this group oversees the majority of the hedge fund industry’s total asset base, and by watching their highest performing picks, we have brought to light a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Northstar Realty Finance Corp. (NYSE:NRF)Equally as important, bullish insider trading sentiment is a second way to break down the stock market universe. Just as you’d expect, there are plenty of motivations for an executive to drop shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this tactic if shareholders know what to do (learn more here).

Now, it’s important to take a peek at the recent action surrounding Northstar Realty Finance Corp. (NYSE:NRF).

Hedge fund activity in Northstar Realty Finance Corp. (NYSE:NRF)

In preparation for this quarter, a total of 25 of the hedge funds we track were long in this stock, a change of 19% from the first quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.

When looking at the hedgies we track, SAC Capital Advisors, managed by Steven Cohen, holds the most valuable position in Northstar Realty Finance Corp. (NYSE:NRF). SAC Capital Advisors has a $82.7 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Bain Capital of Brookside Capital, with a $81.8 million position; 1.8% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include James Dinan’s York Capital Management, Anand Parekh’s Alyeska Investment Group and Jim Simons’s Renaissance Technologies.

Now, key hedge funds have jumped into Northstar Realty Finance Corp. (NYSE:NRF) headfirst. York Capital Management, managed by James Dinan, assembled the most valuable position in Northstar Realty Finance Corp. (NYSE:NRF). York Capital Management had 49.7 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $22.7 million position during the quarter. The other funds with brand new NRF positions are Louis Bacon’s Moore Global Investments, Robert B. Gillam’s McKinley Capital Management, and David Costen Haley’s HBK Investments.

What do corporate executives and insiders think about Northstar Realty Finance Corp. (NYSE:NRF)?

Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time period, Northstar Realty Finance Corp. (NYSE:NRF) has seen 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Northstar Realty Finance Corp. (NYSE:NRF). These stocks are Equity One, Inc. (NYSE:EQY), EPR Properties (NYSE:EPR), Glimcher Realty Trust (NYSE:GRT), and Washington Real Estate Investment Trust (NYSE:WRE). This group of stocks belong to the reit – retail industry and their market caps resemble NRF’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

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!