Is Corinthian Colleges Inc (NASDAQ:COCO) a marvelous investment right now? Investors who are in the know are turning bullish. The number of bullish hedge fund positions advanced by 2 in recent months.
In the financial world, there are tons of gauges investors can use to watch their holdings. A pair 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 top money managers can trounce the broader indices by a superb amount (see just how much).
Equally as important, bullish insider trading activity is a second way to parse down the stock market universe. Obviously, there are many motivations for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this strategy if investors understand where to look (learn more here).
Now, we're going to take a look at the recent action regarding Corinthian Colleges Inc (NASDAQ:COCO).
In preparation for this year, a total of 19 of the hedge funds we track held long positions in this stock, a change of 12% from the previous quarter. With hedgies' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their stakes significantly.
According to our comprehensive database, AQR Capital Management, managed by Cliff Asness, holds the largest position in Corinthian Colleges Inc (NASDAQ:COCO). AQR Capital Management has a $10 million position in the stock, comprising 0% of its 13F portfolio. On AQR Capital Management's heels is Chuck Royce of Royce & Associates, with a $10 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Lisa Rapuano's Lane Five Capital, Robert Pitts's Steadfast Capital Management and Himanshu H. Shah's Shah Capital Management.
As industrywide interest jumped, key hedge funds were breaking ground themselves. Bryn Mawr Capital, managed by Ken Gray and Steve Walsh, established the biggest position in Corinthian Colleges Inc (NASDAQ:COCO). Bryn Mawr Capital had 0 million invested in the company at the end of the quarter. Charles Davidson's Wexford Capital also initiated a $0 million position during the quarter. The following funds were also among the new COCO investors: D. E. Shaw's D E Shaw and Thomas Bailard's Bailard Inc.
Insider trading activity, especially when it's bullish, is most useful when the company we're looking at has experienced transactions within the past half-year. Over the latest 180-day time frame, Corinthian Colleges Inc (NASDAQ:COCO) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results demonstrated by our time-tested strategies, retail investors must always watch hedge fund and insider trading sentiment, and Corinthian Colleges Inc (NASDAQ:COCO) applies perfectly to this mantra.
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