Hedge Funds Are Crazy About Chimera Investment Corporation (NYSE:CIM)

Chimera Investment Corporation (NYSE:CIM) was in 22 hedge funds’ portfolio at the end of December. CIM shareholders have witnessed an increase in hedge fund interest lately. There were 19 hedge funds in our database with CIM holdings at the end of the previous quarter.

In the financial world, there are plenty of gauges investors can use to analyze publicly traded companies. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outpace the S&P 500 by a significant amount (see just how much).

Chimera Investment Corporation (NYSE:CIM)

Equally as key, positive insider trading activity is another way to parse down the world of equities. Obviously, there are a variety of reasons for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).

With these “truths” under our belt, let’s take a peek at the latest action surrounding Chimera Investment Corporation (NYSE:CIM).

How are hedge funds trading Chimera Investment Corporation (NYSE:CIM)?

At the end of the fourth quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 16% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes meaningfully.

According to our comprehensive database, Omega Advisors, managed by Leon Cooperman, holds the largest position in Chimera Investment Corporation (NYSE:CIM). Omega Advisors has a $58 million position in the stock, comprising 1.1% of its 13F portfolio. On Omega Advisors’s heels is D E Shaw, managed by D. E. Shaw, which held a $42 million position; 0.5% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Brian Taylor’s Pine River Capital Management, David Tepper’s Appaloosa Management LP and Larry Robbins’s Glenview Capital.

As one would reasonably expect, key money managers have jumped into Chimera Investment Corporation (NYSE:CIM) headfirst. Wexford Capital, managed by Charles Davidson, initiated the most valuable position in Chimera Investment Corporation (NYSE:CIM). Wexford Capital had 6 million invested in the company at the end of the quarter. James H. Litinsk’s JHL Capital Group also initiated a $2 million position during the quarter. The following funds were also among the new CIM investors: Robert Raiff’s Raiff Partners, Israel Englander’s Millennium Management, and Joe DiMenna’s ZWEIG DIMENNA PARTNERS.

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

Insider purchases made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time frame, Chimera Investment Corporation (NYSE:CIM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned time-tested strategies, everyday investors must always monitor hedge fund and insider trading activity, and Chimera Investment Corporation (NYSE:CIM) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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

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

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

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!