Is Colony Starwood Homes (SFR) Worthy of Your Portfolio?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. Intriguingly, John Khoury’s Long Pond Capital dumped the largest investment of the 700 funds watched by Insider Monkey, comprising about $51.7 million in stock, and Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management was right behind this move, as the fund dropped about $7.8 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Colony Starwood Homes (NYSE:SFR) but similarly valued. We will take a look at Spire Inc(NYSE:SR), Belden Inc. (NYSE:BDC), Chemours Co (NYSE:CC), and Radian Group Inc (NYSE:RDN). This group of stocks’ market values are similar to SFR’s market value.

As you can see these stocks had an average of 22 investors with bullish positions and the average amount invested in these stocks was $333 million, compared to $182 million in SFR’s case. Chemours Co (NYSE:CC) is the most popular stock in this table. On the other hand Spire Inc(NYSE:SR) is the least popular one with only 11 funds holding shares. Colony Starwood Homes (NYSE:SFR) 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 Chemours Co (NYSE:CC) might be a better candidate to consider taking a long position in.

Disclosure: none