Market Overview

Hedge Funds Love These 3 REITs

Hedge Funds Love These 3 REITs

  • A new Citi Research report looked at REIT ownership trends over the past year.
  • Hedge funds account for about 4 percent of total REIT ownership.
  • Hedge funds have remained mostly neutral in their REIT allocation over the past year.
  • Citi Research recently released a huge report that took an in-depth look into trends in REIT ownership. In the report, analyst Michael Bilerman discussed the REITs that top hedge funds have been buying and selling.

    The Numbers

    Overall, hedge funds have remained mostly neutral on REITs in the past year. Hedge fund ownership currently makes up about 4.0 percent of total REIT ownership. “While the total hedge fund ownership is 4 percent – the top 10 positions average approximately 26 percent as a percentage of float – with the top 10 long positions representing ~33 percent of hedge funds' long positions in REITs,” Bilerman explained.

    Related Link: 5 REIT Trends Worth Watching

    Top Long Positions

    According to the report, the three largest hedge fund REIT long positions are currently Equinix Inc (NASDAQ: EQIX), Northstar Realty Finance Corp (NYSE: NRF) and Verit Inc (NYSE: VER).

    The funds included in the report hold combined long positions exceeding $1 billion in each of the three top REITs.

    Top Short Positions

    Bilerman also included a list of the top largest hedge fund REIT short positions.

    The three largest short positions include Rouse Properties Inc (NYSE: RSE), Starwood Waypoint Residential Trust (NYSE: SWAY) and American Residential Properties Inc (NYSE: ARPI).

    Each of the three top shorted-REITs currently has a short interest ratio in excess of 9.0 percent.

    Disclosure: The author holds no position in the stocks mentioned.

    Image Credit: Public Domain

    Latest Ratings for EQIX

    Jul 2019MaintainsOutperform
    Jun 2019Initiates Coverage OnBuy
    May 2019MaintainsBuy

    View More Analyst Ratings for EQIX
    View the Latest Analyst Ratings

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