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Hedge Funds Are Buying Invitation Homes Inc. (INVH)

Insider Monkey finished processing more than 700 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of December 31st, 2018. In this article we are going to take a look at smart money sentiment towards Invitation Homes Inc. (NYSE:INVH).

Is Invitation Homes Inc. (NYSE:INVH) a buy, sell, or hold? Prominent investors are getting more bullish. The number of bullish hedge fund bets advanced by 1 lately. Our calculations also showed that INVH isn’t among the 30 most popular stocks among hedge funds.

To the average investor there are dozens of formulas market participants use to evaluate their stock investments. A pair of the best formulas are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the best investment managers can outperform the S&P 500 by a superb margin (see the details here).

Ken-Heebner

We’re going to go over the fresh hedge fund action encompassing Invitation Homes Inc. (NYSE:INVH).

How have hedgies been trading Invitation Homes Inc. (NYSE:INVH)?

At Q4’s end, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards INVH over the last 14 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

INVH_mar2019

Among these funds, Zimmer Partners held the most valuable stake in Invitation Homes Inc. (NYSE:INVH), which was worth $158.1 million at the end of the third quarter. On the second spot was Capital Growth Management which amassed $33.1 million worth of shares. Moreover, Carlson Capital, Cardinal Capital, and Millennium Management were also bullish on Invitation Homes Inc. (NYSE:INVH), allocating a large percentage of their portfolios to this stock.

As one would reasonably expect, some big names have jumped into Invitation Homes Inc. (NYSE:INVH) headfirst. AEW Capital Management, managed by Jeffrey Furber, created the largest position in Invitation Homes Inc. (NYSE:INVH). AEW Capital Management had $1.5 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $1.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Jonathan Dawson’s Southport Management, Paul Tudor Jones’s Tudor Investment Corp, and Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Invitation Homes Inc. (NYSE:INVH) but similarly valued. These stocks are InterContinental Hotels Group PLC (NYSE:IHG), Enel Americas S.A. (NYSE:ENIA), Dover Corporation (NYSE:DOV), and Conagra Brands, Inc. (NYSE:CAG). This group of stocks’ market valuations are similar to INVH’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IHG 7 18322 4
ENIA 11 80053 0
DOV 29 529420 6
CAG 33 678362 -5
Average 20 326539 1.25

View table here if you experience formatting issues.

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 $327 million. That figure was $265 million in INVH’s case. Conagra Brands, Inc. (NYSE:CAG) is the most popular stock in this table. On the other hand InterContinental Hotels Group PLC (NYSE:IHG) is the least popular one with only 7 bullish hedge fund positions. Invitation Homes Inc. (NYSE:INVH) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 15 most popular stocks among hedge funds returned 19.7% through March 15th and outperformed the S&P 500 ETF (SPY) by 6.6 percentage points. Hedge funds were also right about betting on INVH, though not to the same extent, as the stock returned 19.5% and outperformed the market as well.

Disclosure: None. This article was originally published at Insider Monkey.

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