What Does The Smart Money Think of Biomed Realty Trust Inc (BMR)?

With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Water Island Capital, managed by John Orrico, initiated the largest position in Biomed Realty Trust Inc (NYSE:BMR). Water Island Capital had $30.8 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $10.9 million investment in the stock during the quarter. The following funds were also among the new BMR investors: D. E. Shaw’s D E Shaw, Chao Ku’s Nine Chapters Capital Management, and Dmitry Balyasny’s Balyasny Asset Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Biomed Realty Trust Inc (NYSE:BMR) but similarly valued. These stocks are American Campus Communities, Inc. (NYSE:ACC), AGCO Corporation (NYSE:AGCO), Credit Acceptance Corp. (NASDAQ:CACC), and Spirit Realty Capital, Inc (New) (NYSE:SRC). This group of stocks’ market valuations are closest to BMR’s market valuation.

As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $373 million. That figure was $223 million in BMR’s case. Spirit Realty Capital, Inc (New) (NYSE:SRC) is the most popular stock in this table. On the other hand American Campus Communities, Inc. (NYSE:ACC) is the least popular one with only 15 bullish hedge fund positions. Biomed Realty Trust Inc (NYSE:BMR) 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 SRC might be a better candidate to consider a long position.