Is Community Healthcare Trust Inc (CHCT) Going to Burn These Hedge Funds?

Is Community Healthcare Trust Inc (NYSE:CHCT) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes, but historically their consensus stock picks outperformed the market after adjusting for known risk factors.

Community Healthcare Trust Inc shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare CHCT to other stocks, including JG Wentworth Co (NYSE:JGW), API Technologies Corp (NASDAQ:ATNY), and Performant Financial Corp (NASDAQ:PFMT) to get a better sense of its popularity.

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If you’d ask most investors, hedge funds are perceived as worthless, outdated financial vehicles of years past. While there are over 8000 funds in operation today, Our experts hone in on the masters of this club, around 700 funds. These investment experts shepherd the majority of the hedge fund industry’s total asset base, and by tailing their matchless stock picks, Insider Monkey has determined many investment strategies that have historically defeated the broader indices. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points a year for a decade in their back tests.

With all of this in mind, let’s take a glance at the fresh action regarding Community Healthcare Trust Inc (NYSE:CHCT).

How have hedgies been trading Community Healthcare Trust Inc (NYSE:CHCT)?

Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Dov Gertzulin’s DG Capital Management has the biggest position in Community Healthcare Trust Inc (NYSE:CHCT), worth close to $10.7 million, accounting for 12.5% of its total 13F portfolio. Sitting at the No. 2 spot is Anton Schutz of Mendon Capital Advisors, with a $3.2 million stake; 0.9% of its 13F portfolio is allocated to the company. Other members of the smart money with similar optimism include David M. Knott’s Dorset Management and Israel Englander’s Millennium Management.