Is Whitestone REIT (WSR) A Good Stock To Buy?

Due to the fact that Whitestone REIT (NYSE:WSR) has experienced bearish sentiment from the smart money, logic holds that there exists a select few fund managers who sold off their positions entirely heading into Q4. It’s worth mentioning that Ken Griffin’s Citadel Investment Group cashed in the largest stake of the 700 funds studied by Insider Monkey, valued at an estimated $0.4 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also sold off its stock, about $5,000 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Whitestone REIT (NYSE:WSR) but similarly valued. We will take a look at NanoString Technologies Inc (NASDAQ:NSTG), DICE HOLDINGS, INC. (NYSE:DHX), Teekay Tankers Ltd. (NYSE:TNK), and Forestar Group Inc. (NYSE:FOR). This group of stocks’ market valuations resemble WSR’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $11 million in WSR’s case. NanoString Technologies Inc (NASDAQ:NSTG) is the most popular stock in this table. On the other hand Teekay Tankers Ltd. (NYSE:TNK) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Whitestone REIT (NYSE:WSR) is even less popular than TNK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.