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New Residential Investment Corp (NRZ): Hedge Funds Are Snapping Up

Now, key money managers have been driving this bullishness. EJF Capital, managed by Emanuel J. Friedman, created the most outsized position in New Residential Investment Corp (NYSE:NRZ). EJF Capital had $43.7 million invested in the company at the end of the quarter. Philip Hempleman’s Ardsley Partners also made a $7.6 million investment in the stock during the quarter. The other funds with new positions in the stock are David Rodriguez-Fraile’s BlueMar Capital Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as New Residential Investment Corp (NYSE:NRZ) but similarly valued. These stocks are Energizer Holdings, Inc. (NYSE:ENR), Sensient Technologies Corporation (NYSE:SXT), ALLETE Inc (NYSE:ALE), and Universal Display Corporation (NASDAQ:OLED). All of these stocks’ market caps resemble NRZ’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ENR 20 273772 -4
SXT 16 175833 7
ALE 11 56449 -5
OLED 20 122003 0

As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $157 million. That figure was $219 million in NRZ’s case. Energizer Holdings, Inc. (NYSE:ENR) is the most popular stock in this table. On the other hand ALLETE Inc (NYSE:ALE) is the least popular one with only 11 bullish hedge fund positions. New Residential Investment Corp (NYSE:NRZ) 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 ENR might be a better candidate to consider a long position.

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Disclosure: None