Chimera Investment Corporation (CIM): Are Hedge Funds Right About This Stock?

In the 21st century investor’s toolkit, there are many methods market participants can use to monitor their holdings. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outclass the broader indices by a healthy amount (see just how much).

Just as crucial, positive insider trading activity is another way to look at the stock market universe. Obviously, there are a variety of motivations for an insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this strategy if shareholders know what to do (learn more here).

Furthermore, we’re going to discuss the recent info for Chimera Investment Corporation (NYSE:CIM).

What have hedge funds been doing with Chimera Investment Corporation (NYSE:CIM)?

In preparation for the third quarter, a total of 23 of the hedge funds we track were bullish in this stock, a change of 5% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly.

When using filings from the hedgies we track, Omega Advisors, managed by Leon Cooperman, holds the most valuable position in Chimera Investment Corporation (NYSE:CIM). Omega Advisors has a $170.7 million position in the stock, comprising 2.6% of its 13F portfolio. On Omega Advisors’s heels is Glenview Capital, managed by Larry Robbins, which held a $30.7 million position; 0.3% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Daniel Arbess’s Xerion and Jeffrey Bersh and Michael Wartell’s Venor Capital Management.

With a general bullishness amongst the titans, certain money managers have jumped into Chimera Investment Corporation (NYSE:CIM) headfirst. Omega Advisors, managed by Leon Cooperman, initiated the most outsized position in Chimera Investment Corporation (NYSE:CIM). Omega Advisors had 170.7 million invested in the company at the end of the quarter. Larry Robbins’s Glenview Capital also made a $30.7 million investment in the stock during the quarter. The following funds were also among the new CIM investors: D. E. Shaw’s D E Shaw, Daniel Arbess’s Xerion, and Jeffrey Bersh and Michael Wartell’s Venor Capital Management.

How are insiders trading Chimera Investment Corporation (NYSE:CIM)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time period, Chimera Investment Corporation (NYSE:CIM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Chimera Investment Corporation (NYSE:CIM). These stocks are Newcastle Investment Corp. (NYSE:NCT), Starwood Property Trust, Inc. (NYSE:STWD), Douglas Emmett, Inc. (NYSE:DEI), Retail Properties of America Inc (NYSE:RPAI), and MFA Financial, Inc. (NYSE:MFA). This group of stocks are the members of the reit – diversified industry and their market caps match CIM’s market cap.

Using the returns explained by our tactics, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Chimera Investment Corporation (NYSE:CIM) is no exception.

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