Is Whitestone REIT (WSR) Going to Burn These Hedge Funds?

As industrywide interest jumped, some big names were leading the bulls’ herd. PDT Partners, managed by Peter Muller, established the most outsized position in Whitestone REIT (NYSE:WSR). PDT Partners had $0.1 million invested in the company at the end of the quarter.

Let’s go over hedge fund activity in other stocks similar to Whitestone REIT (NYSE:WSR). We will take a look at NanoString Technologies Inc (NASDAQ:NSTG), Apigee Corp (NASDAQ:APIC), Barrett Business Services, Inc. (NASDAQ:BBSI), and STAAR Surgical Company (NASDAQ:STAA). This group of stocks’ market valuations resembles Whitestone REIT (NYSE:WSR)’s market valuation.

As you can see, these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $60 million. That figure was $13 million in Whitestone REIT (NYSE:WSR)’s case. NanoString Technologies Inc (NASDAQ:NSTG) is the most popular stock in this table. On the other hand, STAAR Surgical Company (NASDAQ:STAA) is the least popular one with only 6 bullish hedge fund positions. Whitestone REIT (NYSE:WSR) 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, NanoString Technologies Inc (NASDAQ:NSTG) might be a better candidate to consider a long position.