Should You Buy Colony Financial Inc (CLNY)?

At the top of the heap, Matthew Mark’s Jet Capital Investors cut the largest position of the 700 funds followed by Insider Monkey, totaling close to $42.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its stock, about $20.1 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks similar to Colony Financial Inc (NYSE:CLNY). We will take a look at Rice Energy Inc (NYSE:RICE), Integra Lifesciences Holdings Corp (NASDAQ:IART), AVX Corporation (NYSE:AVX), and Chico’s FAS, Inc. (NYSE:CHS). This group of stocks’ market values match CLNY’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $304 million. That figure was $594 million in CLNY’s case. Rice Energy Inc (NYSE:RICE) is the most popular stock in this table. On the other hand AVX Corporation (NYSE:AVX) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Colony Financial Inc (NYSE:CLNY) 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.