Hedge Funds Are Losing Confidence in istar Inc (STAR)

Because istar Inc (NYSE:STAR) has experienced declining sentiment from the aggregate hedge fund industry, we can see that there was a specific group of fund managers who sold off their full holdings by the end of the third quarter. At the top of the heap, Michael Platt and William Reeves’ BlueCrest Capital Mgmt. said goodbye to the largest investment of all the hedgies watched by Insider Monkey, worth close to $13 million in stock. Geoffrey Raynor’s fund, Q Investments (Specter Holdings), also dumped its stock, about $6.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 7 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to istar Inc (NYSE:STAR). We will take a look at Bankrate Inc (NYSE:RATE), Franklin Street Properties Corp. (NYSEAMEX:FSP), Physicians Realty Trust (NYSE:DOC), and Advanced Energy Industries, Inc. (NASDAQ:AEIS). This group of stocks’ market valuations match STAR’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $85 million. That figure was $305 million in STAR’s case. Bankrate Inc (NYSE:RATE) is the most popular stock in this table. On the other hand Advanced Energy Industries, Inc. (NASDAQ:AEIS) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks istar Inc (NYSE:STAR) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio, bearing in mind that a large volume of investors decided to move out of it recently.