Do Hedge Funds and Insiders Love Corelogic Inc (CLGX)?

Corelogic Inc (NYSE:CLGX) was in 23 hedge funds’ portfolio at the end of the first quarter of 2013. CLGX investors should pay attention to a decrease in hedge fund interest lately. There were 29 hedge funds in our database with CLGX positions at the end of the previous quarter.

To the average investor, there are a multitude of gauges shareholders can use to analyze stocks. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can beat their index-focused peers by a significant amount (see just how much).

Equally as important, bullish insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are a variety of motivations for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this tactic if shareholders understand where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the key action encompassing Corelogic Inc (NYSE:CLGX).

Hedge fund activity in Corelogic Inc (NYSE:CLGX)

Heading into Q2, a total of 23 of the hedge funds we track held long positions in this stock, a change of -21% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially.

According to our comprehensive database, D E Shaw, managed by D. E. Shaw, holds the largest position in Corelogic Inc (NYSE:CLGX). D E Shaw has a $46.2 million position in the stock, comprising 0.1% of its 13F portfolio. On D E Shaw’s heels is Renaissance Technologies, managed by Jim Simons, which held a $42 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Gregg J. Powers’s Private Capital Management and Donald Chiboucis’s Columbus Circle Investors.

Since Corelogic Inc (NYSE:CLGX) has experienced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers that slashed their entire stakes heading into Q2. Interestingly, Andrew Sandler’s Sandler Capital Management dumped the biggest stake of the 450+ funds we track, valued at an estimated $22.3 million in stock.. Claus Moller’s fund, P2 Capital Partners, also dumped its stock, about $9.4 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 6 funds heading into Q2.

What have insiders been doing with Corelogic Inc (NYSE:CLGX)?

Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Corelogic Inc (NYSE:CLGX) has experienced 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Corelogic Inc (NYSE:CLGX). These stocks are The Hanover Insurance Group, Inc. (NYSE:THG), First American Financial Corp (NYSE:FAF), Amtrust Financial Services, Inc. (NASDAQ:AFSI), American National Insurance Company (NASDAQ:ANAT), and Aspen Insurance Holdings Limited (NYSE:AHL). All of these stocks are in the property & casualty insurance industry and their market caps resemble CLGX’s market cap.

With the returns exhibited by Insider Monkey’s research, retail investors should always watch hedge fund and insider trading sentiment, and Corelogic Inc (NYSE:CLGX) applies perfectly to this mantra.

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