Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 750 active 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 failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Corelogic Inc (NYSE:CLGX) in this article.
Corelogic Inc (NYSE:CLGX) has seen a decrease in support from the world’s most elite money managers recently. Our calculations also showed that CLGX isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
We’re going to take a gander at the fresh hedge fund action surrounding Corelogic Inc (NYSE:CLGX).
Hedge fund activity in Corelogic Inc (NYSE:CLGX)
At the end of the first quarter, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of -11% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards CLGX over the last 15 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).
Among these funds, D E Shaw held the most valuable stake in Corelogic Inc (NYSE:CLGX), which was worth $130.6 million at the end of the first quarter. On the second spot was Fisher Asset Management which amassed $71 million worth of shares. Moreover, Echo Street Capital Management, Arrowstreet Capital, and AQR Capital Management were also bullish on Corelogic Inc (NYSE:CLGX), allocating a large percentage of their portfolios to this stock.
Because Corelogic Inc (NYSE:CLGX) has faced declining sentiment from the smart money, it’s safe to say that there is a sect of fund managers who were dropping their positions entirely last quarter. Interestingly, Minhua Zhang’s Weld Capital Management cut the biggest position of the 700 funds monitored by Insider Monkey, valued at close to $1.9 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also cut its stock, about $0.7 million worth. These moves are interesting, as total hedge fund interest fell by 2 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Corelogic Inc (NYSE:CLGX) but similarly valued. We will take a look at J&J Snack Foods Corp. (NASDAQ:JJSF), Global Blood Therapeutics Inc (NASDAQ:GBT), Cedar Fair, L.P. (NYSE:FUN), and Exponent, Inc. (NASDAQ:EXPO). All of these stocks’ market caps are similar to CLGX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| JJSF | 14 | 95789 | 4 |
| GBT | 26 | 730224 | 1 |
| FUN | 8 | 56848 | -2 |
| EXPO | 18 | 111457 | 2 |
| Average | 16.5 | 248580 | 1.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $249 million. That figure was $311 million in CLGX’s case. Global Blood Therapeutics Inc (NASDAQ:GBT) is the most popular stock in this table. On the other hand Cedar Fair, L.P. (NYSE:FUN) is the least popular one with only 8 bullish hedge fund positions. Corelogic Inc (NYSE:CLGX) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on CLGX as the stock returned 14.8% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.
