Is Corelogic Inc (NYSE:CLGX) a sell?
Now, according to many market players, hedge funds are assumed to be bloated, old financial tools of a period lost to current times. Although there are In excess of 8,000 hedge funds in operation today, Insider Monkey aim at the crème de la crème of this group, about 525 funds. Analysts calculate that this group has its hands on the lion’s share of the smart money’s total assets, and by watching their highest quality stock picks, we’ve deciphered a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as necessary, bullish insider trading activity is a second way to look at the financial markets. As the old adage goes: there are a number of reasons for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if piggybackers know where to look (learn more here).
Thus, we’re going to examine the recent info surrounding Corelogic Inc (NYSE:CLGX).
What does the smart money think about Corelogic Inc (NYSE:CLGX)?
At Q2’s end, a total of 21 of the hedge funds we track held long positions in this stock, a change of -9% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings considerably.
Out of the hedge funds we follow, D. E. Shaw’s D E Shaw had the largest position in Corelogic Inc (NYSE:CLGX), worth close to $41.5 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Samlyn Capital, managed by Robert Pohly, which held a $41.2 million position; 1.2% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Jim Simons’s Renaissance Technologies, Glenn Russell Dubin’s Highbridge Capital Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
As Corelogic Inc (NYSE:CLGX) has witnessed bearish sentiment from the entirety of the hedge funds we track, we can see that there exists a select few fund managers who sold off their full holdings heading into Q2. It’s worth mentioning that Donald Chiboucis’s Columbus Circle Investors dropped the largest investment of the “upper crust” of funds we track, comprising about $16.9 million in stock. Lee Hobson’s fund, Highside Capital Management, also said goodbye to its stock, about $14.2 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q2.
What do corporate executives and insiders think about Corelogic Inc (NYSE:CLGX)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the company in question has seen transactions within the past six months. Over the latest 180-day time frame, Corelogic Inc (NYSE:CLGX) has experienced 1 unique insiders purchasing, and 3 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 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). This group of stocks belong to the property & casualty insurance industry and their market caps are closest to CLGX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The Hanover Insurance Group, Inc. (NYSE:THG) | 14 | 0 | 6 |
| First American Financial Corp (NYSE:FAF) | 28 | 3 | 1 |
| Amtrust Financial Services, Inc. (NASDAQ:AFSI) | 12 | 3 | 3 |
| American National Insurance Company (NASDAQ:ANAT) | 9 | 1 | 2 |
| Aspen Insurance Holdings Limited (NYSE:AHL) | 21 | 1 | 8 |
Using the returns shown by our studies, regular investors must always track hedge fund and insider trading activity, and Corelogic Inc (NYSE:CLGX) is no exception.
