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As Hedge Funds Struggle, REIT Shares Become Their Victims

  • NorthStar stock among worst-performing in mortgage-REIT index
  • Senvest Partners, Orange Capital and SAB among investors
Updated on

Hedge funds that piled into real estate investment trusts are hurting the companies on their way out.

REITs that have had a relatively large portion of hedge fund owners are struggling with declining stock prices. NorthStar Realty Finance Corp. is one of the two worst performers this year in a Bloomberg index of 41 mortgage REITs, with a 39 percent decline. IStar Inc. has dropped 25 percent, Colony Capital Inc. has fallen 19 percent and New Residential Investment Corp. has slumped 10 percent.