Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of June. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is CoreSite Realty Corp (NYSE:COR), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is CoreSite Realty Corp (NYSE:COR) ready to rally soon? The smart money is becoming more confident. The number of bullish hedge fund positions advanced by 1 in recent months. Our calculations also showed that COR isn’t among the 30 most popular stocks among hedge funds (view the video below).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are numerous gauges market participants use to appraise their holdings. Some of the most innovative gauges are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the best money managers can beat the broader indices by a very impressive margin (see the details here).
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let’s view the new hedge fund action encompassing CoreSite Realty Corp (NYSE:COR).
What have hedge funds been doing with CoreSite Realty Corp (NYSE:COR)?
At the end of the second quarter, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the previous quarter. On the other hand, there were a total of 14 hedge funds with a bullish position in COR a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies holds the number one position in CoreSite Realty Corp (NYSE:COR). Renaissance Technologies has a $130.3 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which holds a $44.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions contain Ken Fisher’s Fisher Asset Management, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Now, specific money managers have been driving this bullishness. Winton Capital Management, managed by David Harding, established the most valuable position in CoreSite Realty Corp (NYSE:COR). Winton Capital Management had $4.5 million invested in the company at the end of the quarter. Benjamin A. Smith’s Laurion Capital Management also initiated a $0.7 million position during the quarter. The other funds with brand new COR positions are Matthew Hulsizer’s PEAK6 Capital Management and Claes Fornell’s CSat Investment Advisory.
Let’s also examine hedge fund activity in other stocks similar to CoreSite Realty Corp (NYSE:COR). We will take a look at ALLETE Inc (NYSE:ALE), Ita? CorpBanca (NYSE:ITCB), Gold Fields Limited (NYSE:GFI), and J2 Global Inc (NASDAQ:JCOM). This group of stocks’ market valuations resemble COR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ALE | 24 | 261066 | 6 |
| ITCB | 1 | 4019 | 0 |
| GFI | 14 | 209608 | 4 |
| JCOM | 24 | 309368 | 2 |
| Average | 15.75 | 196015 | 3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $196 million. That figure was $251 million in COR’s case. ALLETE Inc (NYSE:ALE) is the most popular stock in this table. On the other hand Ita? CorpBanca (NYSE:ITCB) is the least popular one with only 1 bullish hedge fund positions. CoreSite Realty Corp (NYSE:COR) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on COR as the stock returned 6.9% during the same time frame and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.
