Hedge Funds Keep Betting On UDR, Inc. (UDR)

The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards UDR, Inc. (NYSE:UDR).

UDR, Inc. (NYSE:UDR) has experienced an increase in hedge fund sentiment recently. UDR, Inc. (NYSE:UDR) was in 30 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 29. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that UDR isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

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Do Hedge Funds Think UDR Is A Good Stock To Buy Now?

At the end of March, a total of 30 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 30% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards UDR over the last 23 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their holdings considerably (or already accumulated large positions).

Is UDR A Good Stock To Buy?

More specifically, Zimmer Partners was the largest shareholder of UDR, Inc. (NYSE:UDR), with a stake worth $63.3 million reported as of the end of March. Trailing Zimmer Partners was Millennium Management, which amassed a stake valued at $63.3 million. Renaissance Technologies, Adage Capital Management, and Diamond Hill Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Hill Winds Capital allocated the biggest weight to UDR, Inc. (NYSE:UDR), around 3% of its 13F portfolio. Element Capital Management is also relatively very bullish on the stock, setting aside 2.51 percent of its 13F equity portfolio to UDR.

As aggregate interest increased, key money managers have jumped into UDR, Inc. (NYSE:UDR) headfirst. Citadel Investment Group, managed by Ken Griffin, assembled the most valuable position in UDR, Inc. (NYSE:UDR). Citadel Investment Group had $15.3 million invested in the company at the end of the quarter. Jeffrey Talpins’s Element Capital Management also initiated a $11 million position during the quarter. The other funds with new positions in the stock are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, George Soros’s Soros Fund Management, and Andrew Weiss’s Weiss Asset Management.

Let’s now review hedge fund activity in other stocks similar to UDR, Inc. (NYSE:UDR). We will take a look at Open Text Corporation (NASDAQ:OTEX), Icahn Enterprises LP (NASDAQ:IEP), Brown & Brown, Inc. (NYSE:BRO), Enel Americas S.A. (NYSE:ENIA), F5 Networks, Inc. (NASDAQ:FFIV), Bentley Systems, Incorporated (NASDAQ:BSY), and LKQ Corporation (NASDAQ:LKQ). This group of stocks’ market values are closest to UDR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OTEX 16 215690 -2
IEP 4 11950636 0
BRO 25 915409 -4
ENIA 11 116873 2
FFIV 26 871819 -8
BSY 22 109974 3
LKQ 36 1543090 -14
Average 20 2246213 -3.3

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 $2246 million. That figure was $312 million in UDR’s case. LKQ Corporation (NASDAQ:LKQ) is the most popular stock in this table. On the other hand Icahn Enterprises LP (NASDAQ:IEP) is the least popular one with only 4 bullish hedge fund positions. UDR, Inc. (NYSE:UDR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for UDR is 80.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 22.8% in 2021 through July 2nd and still beat the market by 6 percentage points. Hedge funds were also right about betting on UDR, though not to the same extent, as the stock returned 14.3% since Q1 (through July 2nd) and outperformed the market as well.

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