Is American Assets Trust, Inc (AAT) Going to Burn These Hedge Funds?

Due to the fact that American Assets Trust, Inc (NYSE:AAT) has experienced a drop in interest from the smart money, it’s easy to see that there were a few hedge funds who sold off their entire stakes in the third quarter. It’s worth mentioning that John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the largest investment of the “upper crust” of funds tracked by Insider Monkey, worth about $0.7 million in stock. Mike Vranos’s fund, Ellington, also dumped its stock, about $0.3 million worth of AAT shares. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to American Assets Trust, Inc (NYSE:AAT). These stocks are Kemper Corporation (NYSE:KMPR), InterDigital, Inc. (NASDAQ:IDCC), Evercore Partners Inc. (NYSE:EVR), and COMSCORE, Inc. (NASDAQ:SCOR). This group of stocks’ market values match AAT’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $149 million. That figure was $88 million in AAT’s case, a negative signal. COMSCORE, Inc. (NASDAQ:SCOR) is the most popular stock in this table. On the other hand Kemper Corporation (NYSE:KMPR) is the least popular one with only 6 bullish hedge fund positions. American Assets Trust, Inc (NYSE:AAT) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SCOR might be a better candidate to consider a long position.