SLM Corp (SLM): Hedge Funds and Insiders Are Bearish, What Should You Do?

SLM Corp (NASDAQ:SLM) was in 30 hedge funds’ portfolio at the end of the first quarter of 2013. SLM has seen a decrease in activity from the world’s largest hedge funds lately. There were 35 hedge funds in our database with SLM holdings at the end of the previous quarter.

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Keeping this in mind, we’re going to take a peek at the latest action surrounding SLM Corp (NASDAQ:SLM).

What have hedge funds been doing with SLM Corp (NASDAQ:SLM)?

Heading into Q2, a total of 30 of the hedge funds we track were bullish in this stock, a change of -14% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

According to our comprehensive database, Jonathon Jacobson’s Highfields Capital Management had the biggest position in SLM Corp (NASDAQ:SLM), worth close to $675.5 million, comprising 6.1% of its total 13F portfolio. Sitting at the No. 2 spot is David Abrams of Abrams Capital Management, with a $308.1 million position; 29.9% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Leon Cooperman’s Omega Advisors, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.

Since SLM Corp (NASDAQ:SLM) has experienced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of money managers who sold off their entire stakes heading into Q2. Interestingly, Israel Englander’s Millennium Management dumped the largest stake of all the hedgies we key on, comprising about $11.8 million in stock.. David Costen Haley’s fund, HBK Investments, also said goodbye to its stock, about $2.4 million worth. These moves are important to note, as total hedge fund interest fell by 5 funds heading into Q2.

What have insiders been doing with SLM Corp (NASDAQ:SLM)?

Insider buying is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, SLM Corp (NASDAQ:SLM) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to SLM Corp (NASDAQ:SLM). These stocks are Discover Financial Services (NYSE:DFS), Equifax Inc. (NYSE:EFX), The Western Union Company (NYSE:WU), and CIT Group Inc. (NYSE:CIT). This group of stocks are the members of the credit services industry and their market caps are similar to SLM’s market cap.