Clark Street Value sold its position in Front Yard Residential Corp (NYSE:RESI) stock. Clark Street Value is an individual investor that is focused on finding value and special situation investments. Front Yard Residential Corp (NYSE:RESI) is a real estate investment trust company. In the last one year, Front Yard Residential Corp (NYSE:RESI) stock gained 30.5% and on January 4th it had a closing price of $16.20.
Clark Street Value said that a consortium of private equity (Ares and Pretium) agreed to acquire Front Yard Residential Corp (NYSE:RESI) for $13.50 per share in October 2020. The investor sold its position in Front Yard Residential Corp (NYSE:RESI) stock after the acquisition news. However, the “the offer was bumped up to $16.25 after a better offer came to light. This could be the start of similar deals where post-covid the entity will be too subscale (MCC and CLNC are two potential examples) and there is plenty of private equity money out there willing to buy cheap real assets.”
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In Q3 2020, the number of bullish hedge fund positions on Front Yard Residential Corp (NYSE:RESI) stock decreased by about 20% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in RESI’s growth potential. Our calculations showed that Front Yard Residential Corp (NYSE:RESI) isn’t ranked among the 30 most popular stocks among hedge funds.
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Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
