Should You Buy Brookdale Senior Living, Inc. (BKD)?

Page 1 of 2

Is Brookdale Senior Living, Inc. (NYSE:BKD) a buy, sell, or hold? Investors who are in the know are taking an optimistic view. The number of long hedge fund bets advanced by 2 in recent months.

To most shareholders, hedge funds are viewed as underperforming, outdated financial tools of the past. While there are greater than 8000 funds in operation at the moment, we at Insider Monkey choose to focus on the aristocrats of this group, close to 450 funds. It is widely believed that this group has its hands on the majority of all hedge funds’ total asset base, and by keeping an eye on their best picks, we have come up with a few investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy outperformed 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 outperformed the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Brookdale Senior Living, Inc. (NYSE:BKD)Equally as key, bullish insider trading activity is a second way to break down the financial markets. As the old adage goes: there are plenty of reasons for an executive to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if “monkeys” understand where to look (learn more here).

Keeping this in mind, it’s important to take a look at the key action regarding Brookdale Senior Living, Inc. (NYSE:BKD).

Hedge fund activity in Brookdale Senior Living, Inc. (NYSE:BKD)

At Q1′s end, a total of 37 of the hedge funds we track were bullish in this stock, a change of 6% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Michael Novogratz’s Fortress Investment Group had the most valuable position in Brookdale Senior Living, Inc. (NYSE:BKD), worth close to $490.5 million, accounting for 8.4% of its total 13F portfolio. Sitting at the No. 2 spot is Donald Chiboucis of Columbus Circle Investors, with a $58.4 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include James Dinan’s York Capital Management, John Bader’s Halcyon Asset Management and Daniel S. Och’s OZ Management.

Now, key hedge funds have been driving this bullishness. Forward Management, managed by J. Alan Reid, Jr., initiated the largest position in Brookdale Senior Living, Inc. (NYSE:BKD). Forward Management had 14.8 million invested in the company at the end of the quarter. Sanford J. Colen’s Apex Capital also made a $12.5 million investment in the stock during the quarter. The other funds with brand new BKD positions are Jeremy Green’s Redmile Group, Paul Tudor Jones’s Tudor Investment Corp, and Louis Bacon’s Moore Global Investments.

What have insiders been doing with Brookdale Senior Living, Inc. (NYSE:BKD)?

Bullish insider trading is most useful when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time frame, Brookdale Senior Living, Inc. (NYSE:BKD) has seen zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Brookdale Senior Living, Inc. (NYSE:BKD). These stocks are Kindred Healthcare, Inc. (NYSE:KND), National HealthCare Corporation (NYSEAMEX:NHC), The Ensign Group, Inc. (NASDAQ:ENSG), Capital Senior Living Corporation (NYSE:CSU), and Emeritus Corporation (NYSE:ESC). All of these stocks are in the long-term care facilities industry and their market caps are similar to BKD’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
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

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

The 10 Most Deadly Diseases in the World Today

The 5 Most Expensive Luxury Motorhomes in the World

20 Largest Stock Exchanges in the World

6 Richest Painters In The World 2014

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!