Chimera Investment Corporation (NYSE:CIM) was in 22 hedge funds’ portfolio at the end of December. CIM shareholders have witnessed an increase in hedge fund interest lately. There were 19 hedge funds in our database with CIM holdings at the end of the previous quarter.
In the financial world, there are plenty of gauges investors can use to analyze publicly traded companies. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outpace the S&P 500 by a significant amount (see just how much).
Equally as key, positive insider trading activity is another way to parse down the world of equities. Obviously, there are a variety of reasons for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the latest action surrounding Chimera Investment Corporation (NYSE:CIM).
How are hedge funds trading Chimera Investment Corporation (NYSE:CIM)?
At the end of the fourth quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 16% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Omega Advisors, managed by Leon Cooperman, holds the largest position in Chimera Investment Corporation (NYSE:CIM). Omega Advisors has a $58 million position in the stock, comprising 1.1% of its 13F portfolio. On Omega Advisors’s heels is D E Shaw, managed by D. E. Shaw, which held a $42 million position; 0.5% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Brian Taylor’s Pine River Capital Management, David Tepper’s Appaloosa Management LP and Larry Robbins’s Glenview Capital.
As one would reasonably expect, key money managers have jumped into Chimera Investment Corporation (NYSE:CIM) headfirst. Wexford Capital, managed by Charles Davidson, initiated the most valuable position in Chimera Investment Corporation (NYSE:CIM). Wexford Capital had 6 million invested in the company at the end of the quarter. James H. Litinsk’s JHL Capital Group also initiated a $2 million position during the quarter. The following funds were also among the new CIM investors: Robert Raiff’s Raiff Partners, Israel Englander’s Millennium Management, and Joe DiMenna’s ZWEIG DIMENNA PARTNERS.
What have insiders been doing with Chimera Investment Corporation (NYSE:CIM)?
Insider purchases made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time frame, Chimera Investment Corporation (NYSE:CIM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned time-tested strategies, everyday investors must always monitor hedge fund and insider trading activity, and Chimera Investment Corporation (NYSE:CIM) shareholders fit into this picture quite nicely.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.
