Smart Money Is Gaining Confidence in American Homes 4 Rent (AMH)

As industry-wide interest jumped, specific money managers have jumped into American Homes 4 Rent (NYSE:AMH) headfirst. Citadel Investment Group established the biggest position in American Homes 4 Rent (NYSE:AMH). According to regulatory filings, the fund had $52.8 million invested in the company at the end of the quarter. Stuart J. Zimmer’s Zimmer Partners also made a $47.6 million investment in the stock during the quarter. The following funds were also among the new AMH investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, Dmitry Balyasny’s Balyasny Asset Management, and Michael Swotes’ Castle Ridge Investment Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as American Homes 4 Rent (NYSE:AMH) but similarly valued. These stocks are Bemis Company, Inc. (NYSE:BMS), AECOM Technology Corp (NYSE:ACM), The Toro Company (NYSE:TTC), and AutoNation, Inc. (NYSE:AN). This group of stocks’ market valuations match AMH’s market valuation.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $486 million. That figure was $648 million in AMH’s case. AECOM Technology Corp (NYSE:ACM) is the most popular stock in this table. On the other hand Bemis Company, Inc. (NYSE:BMS) is the least popular one with only 16 bullish hedge fund positions. American Homes 4 Rent (NYSE:AMH) 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 a lot of hedge funds like. In this regard ACM might be a better candidate to consider a long position in.

Disclosure: None