Hedge Funds Are Betting On Starwood Waypoint Residential Trust (SWAY)

Now, key hedge funds have jumped into Starwood Waypoint Residential Trust (NYSE:SWAY) headfirst. Waterfront Capital Partners, managed by Eduardo Abush, created the most outsized position in Starwood Waypoint Residential Trust (NYSE:SWAY). According to its latest 13F filing, the fund had $5.4 million invested in the company at the end of the quarter. Brian Jackelow’s SAB Capital Management also initiated a $2.7 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies and Sander Gerber’s Hudson Bay Capital Management.

Let’s now review hedge fund activity in other stocks similar to Starwood Waypoint Residential Trust (NYSE:SWAY). We will take a look at Solaredge Technologies Inc (NASDAQ:SEDG), Clearwater Paper Corp (NYSE:CLW), Scientific Games Corp (NASDAQ:SGMS), and Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP). All of these stocks’ market caps match SWAY’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $139 million. That figure was $297 million in SWAY’s case. Scientific Games Corp (NASDAQ:SGMS) is the most popular stock in this table, while Clearwater Paper Corp (NYSE:CLW) is at the other end of the specter with only 12 bullish hedge fund positions. Starwood Waypoint Residential Trust (NYSE:SWAY) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SGMS might be a better candidate to consider a long position.