Do Hedge Funds Love Getty Realty Corp. (GTY)?

Due to the fact that Getty Realty Corp. (NYSE:GTY) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few fund managers that elected to cut their full holdings heading into Q4. Intriguingly, Howard Marks’s Oaktree Capital Management dropped the biggest stake of the “upper crust” of funds monitored by Insider Monkey, comprising about $13 million in call options., and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund dropped about $0.4 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Getty Realty Corp. (NYSE:GTY). These stocks are Cedar Realty Trust Inc (NYSE:CDR), Silver Standard Resources Inc. (USA) (NASDAQ:SSRI), Tarena International Inc(ADR) (NASDAQ:TEDU), and Winthrop Realty Trust (NYSE:FUR). This group of stocks’ market valuations are similar to Getty Realty Corp. (NYSE:GTY)’s market valuation.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $15 million in Getty Realty Corp. (NYSE:GTY)’s case. Winthrop Realty Trust (NYSE:FUR) is the most popular stock in this table. On the other hand, Tarena International Inc(ADR) (NASDAQ:TEDU) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Getty Realty Corp. (NYSE:GTY) is even less popular than Tarena International Inc(ADR) (NASDAQ:TEDU). 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.