Biomed Realty Trust Inc (BMR): Hedge Funds and Insiders Are Bearish, What Should You Do? – DCT Industrial Trust Inc. (DCT), CubeSmart (CUBE)

Biomed Realty Trust Inc (NYSE:BMR) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. BMR investors should pay attention to a decrease in hedge fund interest of late. There were 9 hedge funds in our database with BMR holdings at the end of the previous quarter.

Biomed Realty Trust Inc (NYSE:BMR)

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Just as beneficial, positive insider trading sentiment is another way to parse down the investments you’re interested in. There are plenty of reasons for a corporate insider to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).

Keeping this in mind, it’s important to take a look at the recent action encompassing Biomed Realty Trust Inc (NYSE:BMR).

What have hedge funds been doing with Biomed Realty Trust Inc (NYSE:BMR)?

In preparation for this year, a total of 9 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings significantly.

Of the funds we track, Jeffrey Furber’s AEW Capital Management had the largest position in Biomed Realty Trust Inc (NYSE:BMR), worth close to $50.9 million, accounting for 1.3% of its total 13F portfolio. Sitting at the No. 2 spot is Fisher Asset Management, managed by Ken Fisher, which held a $44.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers that hold long positions include J. Alan Reid, Jr.’s Forward Management, James E. Flynn’s Deerfield Management and Ken Griffin’s Citadel Investment Group.

Judging by the fact that Biomed Realty Trust Inc (NYSE:BMR) has experienced bearish sentiment from hedge fund managers, it’s safe to say that there were a few money managers who sold off their entire stakes heading into 2013. Interestingly, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners said goodbye to the largest investment of the “upper crust” of funds we track, comprising about $0.7 million in stock. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Biomed Realty Trust Inc (NYSE:BMR)?

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time period, Biomed Realty Trust Inc (NYSE:BMR) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Biomed Realty Trust Inc (NYSE:BMR). These stocks are Sovran Self Storage Inc (NYSE:SSS), DCT Industrial Trust Inc. (NYSE:DCT), CubeSmart (NYSE:CUBE), Duke Realty Corp (NYSE:DRE), and Extra Space Storage, Inc. (NYSE:EXR). This group of stocks are in the reit – industrial industry and their market caps match BMR’s market cap.