Corelogic Inc (NYSE:CLGX) has experienced a decrease in support from the world's most elite money managers lately.
According to most market participants, hedge funds are perceived as unimportant, old financial vehicles of the past. While there are over 8000 funds with their doors open at the moment, we at Insider Monkey look at the crème de la crème of this group, about 450 funds. It is estimated that this group oversees the majority of all hedge funds' total capital, and by tracking their highest performing picks, we have discovered a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy beat 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 25 percentage points in 6.5 month (check out a sample of our picks).
Equally as integral, bullish insider trading sentiment is a second way to parse down the marketplace. There are a number of motivations for an upper level exec to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this tactic if "monkeys" know what to do (learn more here).
Consequently, we're going to take a peek at the key action surrounding Corelogic Inc (NYSE:CLGX).
At year's end, a total of 26 of the hedge funds we track held long positions in this stock, a change of -10% from one quarter earlier. With hedgies' capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes substantially.
When looking at the hedgies we track, Columbus Circle Investors, managed by Donald Chiboucis, holds the biggest position in Corelogic Inc (NYSE:CLGX). Columbus Circle Investors has a $68 million position in the stock, comprising 0.5% of its 13F portfolio. The second largest stake is held by D E Shaw, managed by D. E. Shaw, which held a $45 million position; 2.8% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Lee Hobson's Highside Capital Management, Jim Simons's Renaissance Technologies and Gregg J. Powers's Private Capital Management.
Judging by the fact that Corelogic Inc (NYSE:CLGX) has witnessed declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few funds that slashed their positions entirely at the end of the year. It's worth mentioning that Jonathon Jacobson's Highfields Capital Management sold off the largest position of the 450+ funds we monitor, totaling about $163 million in stock.. Brian Taylor's fund, Pine River Capital Management, also dumped its stock, about $15 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds at the end of the year.
Insider trading activity, especially when it's bullish, is most useful when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time period, Corelogic Inc (NYSE:CLGX) has seen 6 unique insiders buying, and 2 insider sales (see the details of insider trades here).
With the results shown by our time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Corelogic Inc (NYSE:CLGX) is an important part of this process.
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.