Should You Add Independence Realty Trust Inc (IRT) to Your Portfolio?

Now, specific money managers have been driving this bullishness. Empyrean Capital Partners assembled the most valuable position in Independence Realty Trust Inc (NYSEMKT:IRT). Anand Parekh’s Alyeska Investment Group also made a $14 million investment in the stock during the quarter. The following funds were also among the new IRT investors: Paul Tudor Jones’s Tudor Investment Corp, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Independence Realty Trust Inc (NYSEMKT:IRT) but similarly valued. We will take a look at Stonegate Bank (NASDAQ:SGBK), Castlight Health Inc (NYSE:CSLT), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), and Landauer, Inc. (NYSE:LDR). This group of stocks’ market valuations are closest to IRT’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SGBK 15 47788 4
CSLT 14 20080 0
ARNA 9 32610 0
LDR 8 62435 2

As you can see these stocks had an average of 12 funds with bullish positions and the average amount invested in these stocks was $41 million, which is lower than the $138 million figure in IRT’s case. Stonegate Bank (NASDAQ:SGBK) is the most popular stock in this table. On the other hand Landauer, Inc. (NYSE:LDR) is the least popular one with only eight funds holding shares. Compared to these stocks Independence Realty Trust Inc (NYSEMKT:IRT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none