DDR Corp (DDR) Lags Peers in Smart Money Ownership

As one would reasonably expect, specific money managers have jumped into DDR Corp (NYSE:DDR) headfirst. AEW Capital Management created the biggest position in DDR Corp (NYSE:DDR). Greg Poole’s Echo Street Capital Management also made a $4.2 million investment in the stock during the quarter. The following funds were also among the new DDR investors: Ray Dalio’s Bridgewater Associates and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as DDR Corp (NYSE:DDR) but similarly valued. We will take a look at EnCana Corporation (USA) (NYSE:ECA), DexCom, Inc. (NASDAQ:DXCM), New Oriental Education & Tech Grp (ADR) (NYSE:EDU), and Hyatt Hotels Corporation (NYSE:H). This group of stocks’ market valuations resemble DDR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ECA 37 2159354 11
DXCM 26 300295 1
EDU 20 288666 0
H 23 293258 5

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $760 million. That figure was $207 million in DDR’s case. EnCana Corporation (USA) (NYSE:ECA) is the most popular stock in this table. On the other hand New Oriental Education & Tech Grp (ADR) (NYSE:EDU) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks DDR Corp (NYSE:DDR) is even less popular than EDU. 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.

Disclosure: None