Hedge Funds Are Selling Rouse Properties Inc (RSE)

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Due to the fact that Rouse Properties Inc (NYSE:RSE) has witnessed falling interest from the smart money, it’s safe to say that there lies a certain “tier” of money managers who were dropping their positions entirely in the third quarter. Intriguingly, Mike Vranos’s Ellington said goodbye to the biggest stake of the 700 funds tracked by Insider Monkey, valued at an estimated $0.3 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also said goodbye to its stock, about $0.2 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 1 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Rouse Properties Inc (NYSE:RSE). We will take a look at Babcock & Wilcox Enterprises Inc (NYSE:BW), Starwood Waypoint Residential Trust (NYSE:SWAY), Solaredge Technologies Inc (NASDAQ:SEDG), and Clearwater Paper Corp (NYSE:CLW). All of these stocks’ market caps are closest to RSE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BW 19 322843 14
SWAY 22 296924 5
SEDG 16 54910 -1
CLW 12 40113 0

As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $179 million. That figure was $90 million in RSE’s case. Starwood Waypoint Residential Trust (NYSE:SWAY) is the most popular stock in this table. On the other hand Clearwater Paper Corp (NYSE:CLW) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Rouse Properties Inc (NYSE:RSE) is even less popular than CLW. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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