Is Paramount Group Inc (PGRE) Worthy of Your Portfolio?

As industrywide interest jumped, some big names were leading the bulls’ herd. Castle Ridge Investment Management, led by Michael Swotes, initiated the most valuable position in Paramount Group Inc (NYSE:PGRE). Castle Ridge Investment Management had $6 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $4.6 million investment in the stock during the quarter. The only other fund with a brand new PGRE position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Paramount Group Inc (NYSE:PGRE) but similarly valued. These stocks are Medical Properties Trust, Inc. (NYSE:MPW), BBVA Banco Frances S.A. (ADR) (NYSE:BFR), Gulfport Energy Corporation (NASDAQ:GPOR), and Post Properties Inc (NYSE:PPS). This group of stocks’ market caps match PGRE’s market cap.

As you can see these stocks had an average of 20 funds with bullish positions and the average amount invested in these stocks was $338 million. That figure was $244 million in PGRE’s case. Gulfport Energy Corporation (NASDAQ:GPOR) is the most popular stock in this table with 34 funds holding shares. On the other hand BBVA Banco Frances S.A. (ADR) (NYSE:BFR) is the least popular one with only 11 bullish hedge fund positions. Paramount Group Inc (NYSE:PGRE) 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 Gulfport Energy Corporation (NASDAQ:GPOR) might be a better candidate to consider taking a long position in.

Disclosure: none