Should You Avoid QTS Realty Trust Inc (QTS)?

Due to the fact that QTS Realty Trust Inc (NYSE:QTS) has experienced bearish sentiment from hedge fund managers, we can see that there was a specific group of money managers that slashed their entire stakes last quarter. Interestingly, Jacob Gottlieb’s Visium Asset Management dumped the biggest stake of all the hedgies studied by Insider Monkey, valued at about $4 million in stock, and Dan Sobol and Lisa Hess’ SkyTop Capital Management was right behind this move, as the fund said goodbye to about $1.7 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to QTS Realty Trust Inc (NYSE:QTS). These stocks are Criteo SA (ADR) (NASDAQ:CRTO), Tenneco Inc (NYSE:TEN), PDC Energy Inc (NASDAQ:PDCE), and LaSalle Hotel Properties (NYSE:LHO). This group of stocks’ market caps resemble QTS’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $159 million. That figure was $102 million in QTS’s case. Tenneco Inc (NYSE:TEN) is the most popular stock in this table. On the other hand Criteo SA (ADR) (NASDAQ:CRTO) is the least popular one with only 13 bullish hedge fund positions. QTS Realty Trust Inc (NYSE:QTS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TEN might be a better candidate to consider taking a long position in.

Disclosure: None