DCT Industrial Trust Inc. (DCT): Are Hedge Funds Right About This Stock?

Due to the fact that DCT Industrial Trust Inc. (NYSE:DCT) has faced a declination in interest from the smart money, we can see that there lies a certain “tier” of fund managers that decided to sell off their full holdings in the third quarter. At the top of the heap, Renaissance Technologies sold off the largest investment of the 700 funds followed by Insider Monkey, valued at close to $9 million in stock, and Chuck Royce’s Royce & Associates was right behind this move, as the fund dumped about $8.8 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest fell by 1 fund in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to DCT Industrial Trust Inc. (NYSE:DCT). These stocks are Ubiquiti Networks Inc (NASDAQ:UBNT), Hill-Rom Holdings, Inc. (NYSE:HRC), Boardwalk Pipeline Partners, LP (NYSE:BWP), and Cedar Fair, L.P. (NYSE:FUN). This group of stocks’ market caps resembles DCT Industrial Trust Inc. (NYSE:DCT)’s market cap.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $226 million. That figure was $130 million in DCT Industrial Trust Inc. (NYSE:DCT)’s case. Hill-Rom Holdings, Inc. (NYSE:HRC) is the most popular stock in this table. On the other hand, Ubiquiti Networks Inc (NASDAQ:UBNT) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks, DCT Industrial Trust Inc. (NYSE:DCT) is even less popular than Ubiquiti Networks Inc (NASDAQ:UBNT). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.