Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...