What Do Hedge Funds Think of Retail Properties of America Inc (RPAI)?

As industrywide interest jumped, key money managers have jumped into Retail Properties of America Inc (NYSE:RPAI) headfirst. Balyasny Asset Management, managed by Dmitry Balyasny, assembled the biggest position in Retail Properties of America Inc (NYSE:RPAI). Balyasny Asset Management had $4.4 million invested in the company at the end of the quarter. George Hall’s Clinton Group also initiated a $0.4 million position during the quarter. The only other fund with a brand new RPAI position is Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Retail Properties of America Inc (NYSE:RPAI) but similarly valued. We will take a look at ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), Owens-Illinois Inc (NYSE:OI), Companhia Brasileira de Distrib. (ADR) (NYSE:CBD), and Radian Group Inc (NYSE:RDN). This group of stocks’ market valuations resemble RPAI’s market valuation.

As you can see these stocks had an average of 22.25 hedge funds with bullish positions and the average amount invested in these stocks was $661 million. That figure was $116 million in RPAI’s case. Radian Group Inc (NYSE:RDN) is the most popular stock in this table. On the other hand Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) is the least popular one with only 8 bullish hedge fund positions. Retail Properties of America Inc (NYSE:RPAI) 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 RDN might be a better candidate to consider a long position.