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Should You Buy Caretrust REIT Inc (CTRE)?

Some of the aforementioned funds initiated their stakes during the third quarter. Moab Capital Partners, established the biggest position in Caretrust REIT Inc (NASDAQ:CTRE). Balyasny Asset Management also initiated its stake during the same period. The other funds with brand new CTRE positions are Hawk Ridge Management, Jacob Gottlieb’s Visium Asset Management, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Caretrust REIT Inc (NASDAQ:CTRE) but similarly valued. We will take a look at Renewable Energy Group Inc (NASDAQ:REGI), Park Electrochemical Corp. (NYSE:PKE), Gain Capital Holdings Inc (NYSE:GCAP), and Clifton Savings Bancorp, Inc. (NASDAQ:CSBK). This group of stocks’ market valuations resemble CTRE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
REGI 10 47279 -5
PKE 7 70281 -3
GCAP 17 48092 1
CSBK 11 44743 0

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $30 million in CTRE’s case. Gain Capital Holdings Inc (NYSE:GCAP) is the most popular stock in this table. On the other hand Park Electrochemical Corp. (NYSE:PKE) is the least popular one with only 7 bullish hedge fund positions. Caretrust REIT Inc (NASDAQ:CTRE) 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 GCAP might be a better candidate to consider a long position.

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