Now, according to many of your peers, hedge funds are seen as bloated, old investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds in operation today, Insider Monkey looks at the bigwigs of this club, around 525 funds. It is assumed that this group oversees most of all hedge funds’ total assets, and by tracking their highest performing picks, we’ve determined a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as key, optimistic insider trading activity is another way to analyze the financial markets. Just as you’d expect, there are a variety of stimuli for a corporate insider to cut 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 investors know where to look (learn more here).
Now that that’s out of the way, let’s analyze the latest info about Silver Bay Realty Trust Corp (NYSE:SBY).
How have hedgies been trading Silver Bay Realty Trust Corp (NYSE:SBY)?
At Q2’s end, a total of 12 of the hedge funds we track held long positions in this stock, a change of -29% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings considerably.
Out of the hedge funds we follow, SAC Capital Advisors, managed by Steven Cohen, holds the largest position in Silver Bay Realty Trust Corp (NYSE:SBY). SAC Capital Advisors has a $39.1 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Jeffrey Bersh and Michael Wartell of Venor Capital Management, with a $19.6 million position; 7% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Paul Ruddock and Steve Heinz’s Lansdowne Partners, John Khoury’s Long Pond Capital and Ken Griffin’s Citadel Investment Group.
As Silver Bay Realty Trust Corp (NYSE:SBY) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedge funds that slashed their positions entirely heading into Q2. At the top of the heap, Brian Jackelow’s SAB Capital Management sold off the largest investment of the 450+ funds we track, valued at close to $21.4 million in stock, and Bain Capital of Brookside Capital was right behind this move, as the fund said goodbye to about $7.1 million worth. These moves are important to note, as total hedge fund interest fell by 5 funds heading into Q2.
Insider trading activity in Silver Bay Realty Trust Corp (NYSE:SBY)
Insider buying is particularly usable when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Silver Bay Realty Trust Corp (NYSE:SBY) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Silver Bay Realty Trust Corp (NYSE:SBY). These stocks are Education Realty Trust, Inc. (NYSE:EDR), Dynex Capital Inc (NYSE:DX), Apollo Residential Mortgage Inc (NYSE:AMTG), Associated Estates Realty Corporation (NYSE:AEC), and Resource Capital Corp. (NYSE:RSO). This group of stocks are the members of the reit – residential industry and their market caps are similar to SBY’s market cap.