Hedge Funds Are Buying Silver Bay Realty Trust Corp (SBY)

Silver Bay Realty Trust Corp (NYSE:SBY) was in 11 hedge funds’ portfolio at the end of the fourth quarter of 2012. SBY investors should pay attention to an increase in enthusiasm from smart money recently. There were 0 hedge funds in our database with SBY positions at the end of the previous quarter.

In the financial world, there are a multitude of metrics investors can use to watch the equity markets. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outclass the S&P 500 by a healthy margin (see just how much).

Equally as key, bullish insider trading activity is another way to break down the marketplace. As the old adage goes: there are a variety of stimuli for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).

Now, we’re going to take a gander at the key action regarding Silver Bay Realty Trust Corp (NYSE:SBY).

Hedge fund activity in Silver Bay Realty Trust Corp (NYSE:SBY)

#DIV/0!

Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in Silver Bay Realty Trust Corp (NYSE:SBY). Citadel Investment Group has a $19.5 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Steven Cohen of SAC Capital Advisors, with a $14.8 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Brian Jackelow’s SAB Capital Management, Jeffrey Bersh and Michael Wartell’s Venor Capital Management and Paul Ruddockáand Steve Heinz’s Lansdowne Partners.

As one would reasonably expect, some big names have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, created the most valuable position in Silver Bay Realty Trust Corp (NYSE:SBY). Citadel Investment Group had 19.5 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $14.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Brian Jackelow’s SAB Capital Management, Jeffrey Bersh and Michael Wartell’s Venor Capital Management, and Paul Ruddockáand Steve Heinz’s Lansdowne Partners.

What do corporate executives and insiders think about Silver Bay Realty Trust Corp (NYSE:SBY)?

Insider buying is at its handiest when the company in question has experienced transactions within the past half-year. Over the last six-month time period, Silver Bay Realty Trust Corp (NYSE:SBY) has seen 8 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Silver Bay Realty Trust Corp (NYSE:SBY). These stocks are Education Realty Trust, Inc. (NYSE:EDR), Dynex Capital Inc (NYSE:DX), Apollo Residential Mortgage Inc (NYSE:AMTG), Associated Estates Realty Corporation (NYSE:AEC), and Resource Capital Corp. (NYSE:RSO). This group of stocks belong to the reit – residential industry and their market caps match SBY’s market cap.