Brookdale Senior Living, Inc. (BKD): Are Hedge Funds Right About This Stock?

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As industrywide interest jumped, specific money managers were breaking ground themselves. Passport Capital, managed by John Burbank, created the most outsized position in Brookdale Senior Living, Inc. (NYSE:BKD). Passport Capital had $49.6 million invested in the company at the end of the quarter. Michael Blitzer’s Kingstown Capital Management also made a $34.4 million investment in the stock during the quarter. The following funds were also among the new BKD investors: Richard S. Meisenberg’s ACK Asset Management, Andrew Goldman’s Seven Locks Capital Management, and Thomas Ellis and Todd Hammer’s North Run Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Brookdale Senior Living, Inc. (NYSE:BKD) but similarly valued. These stocks are Ingram Micro Inc. (NYSE:IM), First American Financial Corp (NYSE:FAF), National Fuel Gas Co. (NYSE:NFG), and Western Refining, Inc. (NYSE:WNR). All of these stocks’ market caps match BKD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IM 31 714718 -5
FAF 20 392949 9
NFG 22 455990 11
WNR 30 471812 5

As you can see these stocks had an average of 25.75 hedge funds with bullish positions and the average amount invested in these stocks was $509 million. That figure was $2170 million in BKD’s case. Ingram Micro Inc. (NYSE:IM) is the most popular stock in this table. On the other hand First American Financial Corp (NYSE:FAF) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Brookdale Senior Living, Inc. (NYSE:BKD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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