What Hedge Funds Think About CIGNA Corporation (CI)

CIGNA Corporation (NYSE:CI): curious what hedgies think about your stock?

In the 21st century investor’s toolkit, there are tons of indicators market participants can use to watch publicly traded companies. Some of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outpace the broader indices by a healthy amount (see just how much).

Just as key, bullish insider trading activity is a second way to analyze the investments you’re interested in. Just as you’d expect, there are a number of stimuli for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).

What’s more, we’re going to analyze the latest info surrounding CIGNA Corporation (NYSE:CI).

Hedge fund activity in CIGNA Corporation (NYSE:CI)

At Q2’s end, a total of 44 of the hedge funds we track held long positions in this stock, a change of 5% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings significantly.

According to our 13F database, Greenlight Capital, managed by David Einhorn, holds the largest position in CIGNA Corporation (NYSE:CI). Greenlight Capital has a $360.6 million position in the stock, comprising 6.8% of its 13F portfolio. On Greenlight Capital’s heels is Glenview Capital, managed by Larry Robbins, which held a $239 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Jeffrey Tannenbaum’s Fir Tree, Steven Richman’s East Side Capital (RR Partners) and Daniel S. Och’s OZ Management.

Consequently, certain money managers were leading the bulls’ herd. Greenlight Capital, managed by David Einhorn, established the largest position in CIGNA Corporation (NYSE:CI). Greenlight Capital had 360.6 million invested in the company at the end of the quarter. Larry Robbins’s Glenview Capital also made a $239 million investment in the stock during the quarter. The other funds with new positions in the stock are Jeffrey Tannenbaum’s Fir Tree, Steven Richman’s East Side Capital (RR Partners), and Daniel S. Och’s OZ Management.

How are insiders trading CIGNA Corporation (NYSE:CI)?

Legal insider trading, particularly when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, CIGNA Corporation (NYSE:CI) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to CIGNA Corporation (NYSE:CI). These stocks are Coventry Health Care, Inc. (NYSE:CVH), Express Scripts Holding Company (NASDAQ:ESRX), Humana Inc (NYSE:HUM), WellPoint, Inc. (NYSE:WLP), and Aetna Inc. (NYSE:AET). This group of stocks are the members of the health care plans industry and their market caps are closest to CI’s market cap.