Here is What Hedge Funds Think About Cedar Realty Trust Inc (CDR)

In this article you are going to find out whether hedge funds think Cedar Realty Trust Inc (NYSE:CDR) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Is Cedar Realty Trust Inc (NYSE:CDR) a good investment today? Money managers are betting on the stock. The number of long hedge fund bets moved up by 1 recently. Our calculations also showed that CDR isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

In today’s marketplace there are a multitude of formulas investors can use to size up stocks. A couple of the most useful formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the top money managers can trounce the market by a healthy amount (see the details here).

Roger Ibbotson of Zebra Capital Management

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, We take a look at lists like the 10 most profitable companies in the world to identify the compounders that are likely to deliver double digit returns. We interview hedge fund managers and ask them about their best ideas. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. For example we are checking out stocks recommended/scorned by legendary Bill Miller. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we’re going to check out the key hedge fund action encompassing Cedar Realty Trust Inc (NYSE:CDR).

What have hedge funds been doing with Cedar Realty Trust Inc (NYSE:CDR)?

At Q1’s end, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 13% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CDR over the last 18 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Renaissance Technologies has the most valuable position in Cedar Realty Trust Inc (NYSE:CDR), worth close to $2.8 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is D E Shaw, managed by D. E. Shaw, which holds a $0.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Zebra Capital Management allocated the biggest weight to Cedar Realty Trust Inc (NYSE:CDR), around 0.02% of its 13F portfolio. Algert Coldiron Investors is also relatively very bullish on the stock, dishing out 0.01 percent of its 13F equity portfolio to CDR.

Now, some big names were breaking ground themselves. Zebra Capital Management, managed by Roger Ibbotson, created the largest position in Cedar Realty Trust Inc (NYSE:CDR). Zebra Capital Management had $0 million invested in the company at the end of the quarter.

Let’s also examine hedge fund activity in other stocks similar to Cedar Realty Trust Inc (NYSE:CDR). We will take a look at ESSA Pharma Inc. (NASDAQ:EPIX), Checkpoint Therapeutics, Inc. (NASDAQ:CKPT), Atento SA (NYSE:ATTO), and Aspira Women’s Health Inc. (NASDAQ:VRML). This group of stocks’ market values are closest to CDR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EPIX 4 27728 -1
CKPT 3 157 1
ATTO 6 509 0
VRML 4 2826 0
Average 4.25 7805 0

View table here if you experience formatting issues.

As you can see these stocks had an average of 4.25 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $5 million in CDR’s case. Atento SA (NYSE:ATTO) is the most popular stock in this table. On the other hand Checkpoint Therapeutics, Inc. (NASDAQ:CKPT) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Cedar Realty Trust Inc (NYSE:CDR) is more popular among hedge funds. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.4% in 2020 through June 22nd and still beat the market by 15.9 percentage points. Unfortunately CDR wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on CDR were disappointed as the stock returned 14.3% during the second quarter (through June 22nd) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.

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