Chimera Investment Corporation (CIM): Hedge Funds and Insiders Are Bearish, What Should You Do?

Page 1 of 2

Chimera Investment Corporation (NYSE:CIM) investors should be aware of a decrease in hedge fund interest lately.

If you’d ask most investors, hedge funds are perceived as worthless, outdated investment vehicles of yesteryear. While there are more than 8000 funds with their doors open at present, we at Insider Monkey hone in on the crème de la crème of this group, around 450 funds. It is widely believed that this group controls the majority of all hedge funds’ total capital, and by watching their highest performing stock picks, we have revealed a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Chimera Investment Corporation (NYSE:CIM)Equally as important, positive insider trading sentiment is a second way to break down the financial markets. Just as you’d expect, there are lots of stimuli for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).

Consequently, it’s important to take a peek at the recent action surrounding Chimera Investment Corporation (NYSE:CIM).

What have hedge funds been doing with Chimera Investment Corporation (NYSE:CIM)?

At the end of the first quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of -4% from the first quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Leon Cooperman’s Omega Advisors had the largest position in Chimera Investment Corporation (NYSE:CIM), worth close to $155.7 million, accounting for 2.4% of its total 13F portfolio. Coming in second is Dan Loeb of Third Point, with a $47.9 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Larry Robbins’s Glenview Capital, Wayne Cooperman’s Cobalt Capital Management and Daniel Arbess’s Xerion.

Seeing as Chimera Investment Corporation (NYSE:CIM) has experienced a declination in interest from hedge fund managers, logic holds that there lies a certain “tier” of funds that slashed their full holdings at the end of the first quarter. It’s worth mentioning that Brian Taylor’s Pine River Capital Management dropped the biggest position of the “upper crust” of funds we key on, totaling about $24.4 million in stock.. Paul Singer’s fund, Elliott Management, also dropped its stock, about $12.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds at the end of the first quarter.

What do corporate executives and insiders think about Chimera Investment Corporation (NYSE:CIM)?

Insider buying is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, Chimera Investment Corporation (NYSE:CIM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Chimera Investment Corporation (NYSE:CIM). These stocks are Newcastle Investment Corp. (NYSE:NCT), Starwood Property Trust, Inc. (NYSE:STWD), Douglas Emmett, Inc. (NYSE:DEI), Retail Properties of America Inc (NYSE:RPAI), and MFA Financial, Inc. (NYSE:MFA). This group of stocks belong to the reit – diversified industry and their market caps are closest to CIM’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!