Are Hedge Funds Fond of Apartment Investment and Management Co (AIV)?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Intriguingly, Israel Englander’s Millennium Management cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, valued at about $69.9 million in stock, and Malcolm Fairbairn’s Ascend Capital was right behind this move, as the fund dropped about $14.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Apartment Investment and Management Co (NYSE:AIV) but similarly valued. We will take a look at American Campus Communities, Inc. (NYSE:ACC), NetApp Inc. (NASDAQ:NTAP), Jack Henry & Associates, Inc. (NASDAQ:JKHY), and Computer Sciences Corporation (NYSE:CSC). This group of stocks’ market valuations are closest to AIV’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ACC 17 140709 0
NTAP 28 387760 9
JKHY 13 172363 -2
CSC 31 1816300 0

As you can see these stocks had an average of 22 funds with bullish positions and the average amount invested in these stocks was $629 million, compared to $165 million in AIV’s case. Computer Sciences Corporation (NYSE:CSC) is the most popular stock in this table. On the other hand Jack Henry & Associates, Inc. (NASDAQ:JKHY) is the least popular one with only 13 bullish hedge fund positions. Apartment Investment and Management Co (NYSE:AIV) 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 Computer Sciences Corporation (NYSE:CSC) might be a better candidate to consider taking a long position in.

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