Is InfraREIT Inc (HIFR) Worthy of Your Portfolio?

Because InfraREIT Inc (NYSE:HIFR) has weathered falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of funds that elected to cut their full holdings last quarter. Interestingly, Andrew Goldman’s Seven Locks Capital Management sold off the largest investment of the “upper crust” of funds tracked by Insider Monkey, worth about $4.1 million in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund cut about $3.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to InfraREIT Inc (NYSE:HIFR). We will take a look at Cardiovascular Systems Inc (NASDAQ:CSII), Goldman Sachs BDC Inc (NYSE:GSBD), Halcon Resources Corp (NYSE:HK), and American Capital Mortgage Investment Crp (NASDAQ:MTGE). This group of stocks’ market values are closest to HIFR’s market value.

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $83 million, which is lower than the $142 million figure in HIFR’s case. Cardiovascular Systems Inc (NASDAQ:CSII) is the most popular stock in this table. On the other hand Goldman Sachs BDC Inc (NYSE:GSBD) is the least popular one with only three funds having reported long positions. InfraREIT Inc (NYSE:HIFR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Cardiovascular Systems Inc (NASDAQ:CSII) might be a better candidate to consider taking a long position in.

Disclosure: none