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Should You Buy Colony Financial Inc (CLNY)?

The worries about the economic slowdown in China and the ongoing uncertainty about the path of interest-rate increases triggered several waves of equity sell-offs during the third quarter. Of course, most hedge funds and other asset managers had to stomach substantial losses during the bloody three-month period, which might have caused some to consider fleeing the U.S. equity markets. Interestingly, smaller-cap stocks registered higher losses than large-capitalization stocks during the September quarter, suggesting that institutional investors heavily discarded seemingly riskier equities amid high uncertainty and turmoil. In fact, the Russell 2000 Index lost 11.9% in the third quarter, while the Standard and Poor’s 500 benchmark declined a mere 6.4%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Colony Financial Inc (NYSE:CLNY).

Hedge fund interest in Colony Financial Inc (NYSE:CLNY) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare CLNY to other stocks including Rice Energy Inc (NYSE:RICE), Integra Lifesciences Holdings Corp (NASDAQ:IART), and AVX Corporation (NYSE:AVX) to get a better sense of its popularity.

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With all of this in mind, let’s review the fresh action regarding Colony Financial Inc (NYSE:CLNY).

Hedge fund activity in Colony Financial Inc (NYSE:CLNY)

According to Insider Monkey’s hedge fund database, EJF Capital, managed by Emanuel J. Friedman, holds the largest position in Colony Financial Inc (NYSE:CLNY). EJF Capital has an $206 million position in the stock, comprising 10% of its 13F portfolio. Sitting at the No. 2 spot is Brian Jackelow of SAB Capital Management, with an $78.8 million position; 11.4% of its 13F portfolio is allocated to the company. Some other peers that hold long positions comprise Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Wayne Cooperman’s Cobalt Capital Management and J. Alan Reid, Jr.’s Forward Management.

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