In the 21st century investor’s toolkit, there are many metrics shareholders can use to monitor the equity markets. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can trounce the market by a solid amount (see just how much).
Equally as necessary, optimistic insider trading sentiment is another way to analyze the world of equities. Just as you’d expect, there are a variety of reasons for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the valuable potential of this strategy if you understand where to look (learn more here).
Furthermore, we’re going to discuss the latest info surrounding Apollo Commercial Real Est. Finance Inc (NYSE:ARI).
How have hedgies been trading Apollo Commercial Real Est. Finance Inc (NYSE:ARI)?
At the end of the second quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of -23% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes substantially.
According to our 13F database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Apollo Commercial Real Est. Finance Inc (NYSE:ARI). Renaissance Technologies has a $14.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $7.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Dmitry Balyasny’s Balyasny Asset Management, John Fichthorn’s Dialectic Capital Management and D. E. Shaw’s D E Shaw.
Since Apollo Commercial Real Est. Finance Inc (NYSE:ARI) has witnessed a fall in interest from upper-tier hedge fund managers, logic holds that there exists a select few hedge funds who sold off their entire stakes last quarter. Interestingly, Brian Jackelow’s SAB Capital Management dropped the biggest position of the “upper crust” of funds we watch, totaling about $8.9 million in stock, and Richard Driehaus of Driehaus Capital was right behind this move, as the fund dropped about $3.8 million worth. These moves are important to note, as total hedge fund interest dropped by 3 funds last quarter.
What do corporate executives and insiders think about Apollo Commercial Real Est. Finance Inc (NYSE:ARI)?
Insider buying is best served when the company in question has experienced transactions within the past half-year. Over the last six-month time period, Apollo Commercial Real Est. Finance Inc (NYSE:ARI) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Apollo Commercial Real Est. Finance Inc (NYSE:ARI). These stocks are Winthrop Realty Trust (NYSE:FUR), Anworth Mortgage Asset Corporation (NYSE:ANH), RAIT Financial Trust (NYSE:RAS), AG Mortgage Investment Trust Inc (NYSE:MITT), and Excel Trust Inc (NYSE:EXL). All of these stocks are in the reit – diversified industry and their market caps are similar to ARI’s market cap.