Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Corenergy Infrastructure Trust Inc (NYSE:CORR) in this article.
Corenergy Infrastructure Trust Inc (NYSE:CORR) has experienced a decrease in activity from the world’s largest hedge funds in recent months. CORR was in 9 hedge funds’ portfolios at the end of the third quarter of 2015. There were 10 hedge funds in our database with CORR positions at the end of the previous quarter. At the end of this article we will also compare CORR to other stocks including Nova Measuring Instruments Ltd. (NASDAQ:NVMI), Pacific Drilling SA (NYSE:PACD), and Antares Pharma Inc (NASDAQ:ATRS) to get a better sense of its popularity.
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Now, we’re going to check out the key action surrounding Corenergy Infrastructure Trust Inc (NYSE:CORR).
Hedge fund activity in Corenergy Infrastructure Trust Inc (NYSE:CORR)
At the end of the third quarter, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -10% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exist a few notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, J. Alan Reid, Jr.’s Forward Management has the biggest position in Corenergy Infrastructure Trust Inc (NYSE:CORR), worth close to $12.5 million, comprising 1% of its total 13F portfolio. The second most bullish fund manager is J. Alan Reid, Jr. of Forward Management, with an $9.1 million position; 0.7% of its 13F portfolio is allocated to the stock. Other peers with similar optimism consist of Chao Ku’s Nine Chapters Capital Management, J. Alan Reid, Jr.’s Forward Management and Jim Simons’s Renaissance Technologies.
Judging by the fact that Corenergy Infrastructure Trust Inc (NYSE:CORR) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of funds that decided to sell off their full holdings in the third quarter. Interestingly, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital dropped the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $0.6 million in stock, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund said goodbye to about $0.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 fund in the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Corenergy Infrastructure Trust Inc (NYSE:CORR) but similarly valued. We will take a look at Nova Measuring Instruments Ltd. (NASDAQ:NVMI), Pacific Drilling SA (NYSE:PACD), Antares Pharma Inc (NASDAQ:ATRS), and Harmony Gold Mining Co. (ADR) (NYSE:HMY). This group of stocks’ market values match CORR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NVMI | 7 | 21462 | -1 |
| PACD | 8 | 23604 | -6 |
| ATRS | 14 | 64767 | 2 |
| HMY | 8 | 10213 | -2 |
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $25 million in CORR’s case. Antares Pharma Inc (NASDAQ:ATRS) is the most popular stock in this table. On the other hand Nova Measuring Instruments Ltd. (NASDAQ:NVMI) is the least popular one with only 7 bullish hedge fund positions. Corenergy Infrastructure Trust Inc (NYSE:CORR) is not the least popular stock in this group, but still has not attracted much attention from investors. This may indicate it is not a good stock to buy, and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, ATRS might be a better candidate to consider a long position.