Would You Consider Investing in Bluerock Residential (BRG)’s Stock?

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned Bluerock Residential Growth REIT, Inc. (NYSE: BRG) and discussed its stance on the firm. Bluerock Residential Growth REIT, Inc. is a New York, New York-based real estate investment trust company with a $731.4 million market capitalization. BRG delivered a 0.53% return since the beginning of the year, while its 12-month returns are up by 130.30%. The stock closed at $26.53 per share on January 13, 2022.

Here is what Clark Street Value has to say about Bluerock Residential Growth REIT, Inc. in its Q4 2021 investor letter:

“Bluerock Residential Growth REIT (BRG) entered into a transaction with Blackstone to buy their multi-family properties and lending book for $24.25 per share, plus BRG is going to spinoff a single family rental REIT, “Bluerock Homes Trust”, where BRG got a third party valuation firm to put a $5.60 NAV per share on it.  BRG is currently trading for $26.36, the deal with Blackstone is almost certain to close, thus the market is applying a pretty steep discount on the single family REIT.  It will revert to being an externally managed by Bluerock (BRG started as externally managed, later pseudo-internalized), who prior to this transaction didn’t have a great reputation, but obviously this was a great result for shareholders and merger arb types might want to look at the spin (expected Q2 close).”

Our calculations show that Bluerock Residential Growth REIT, Inc. (NYSE: BRG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. BRG was in 10 hedge fund portfolios at the end of the third quarter of 2021, compared to 11 funds in the previous quarter. Bluerock Residential Growth REIT, Inc. (NYSE: BRG) delivered a 91.83% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.