UDR, Inc. (UDR): Hedge Funds Are Buying, Should You?

Due to the fact that UDR, Inc. (NYSE:UDR) has experienced a declining sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers that elected to cut their positions entirely in the third quarter. At the top of the heap, Israel Englander’s Millennium Management sold off the largest stake of all the hedgies followed by Insider Monkey, totaling about $5.6 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $3 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 3 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as UDR, Inc. (NYSE:UDR) but similarly valued. We will take a look at Expeditors International of Washington (NASDAQ:EXPD), Cheniere Energy Partners LP (NYSEMKT:CQP), Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), and Digital Realty Trust, Inc. (NYSE:DLR). This group of stocks’ market caps is the closest to UDR, Inc. (NYSE:UDR)’s market cap.

As you can see, these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $771 million. That figure was $45 million in UDR, Inc. (NYSE:UDR)’s case. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is the most popular stock in this table. On the other hand, Cheniere Energy Partners LP (NYSEMKT:CQP) is the least popular one with only 8 bullish hedge fund positions. UDR, Inc. (NYSE:UDR) 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, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) might be a better candidate to consider a long position.