Is Front Yard Residential (RESI) Stock a Buy For 2021?

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.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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