Is CIGNA Corporation (NYSE:CI) Going to Burn These Hedge Funds?

CIGNA Corporation (NYSE:CI) investors should be aware of a decrease in support from the world’s most elite money managers in recent months.

In the eyes of most stock holders, hedge funds are viewed as underperforming, old financial tools of the past. While there are over 8000 funds in operation at the moment, we at Insider Monkey choose to focus on the top tier of this group, about 450 funds. Most estimates calculate that this group controls the majority of the hedge fund industry’s total capital, and by watching their best equity investments, we have brought to light a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

CIGNA Corporation (NYSE:CI)

Just as beneficial, bullish insider trading activity is another way to parse down the investments you’re interested in. There are plenty of incentives for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).

Now, it’s important to take a gander at the recent action encompassing CIGNA Corporation (NYSE:CI).

How have hedgies been trading CIGNA Corporation (NYSE:CI)?

At year’s end, a total of 37 of the hedge funds we track held long positions in this stock, a change of -12% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.

When looking at the hedgies we track, David Einhorn’s Greenlight Capital had the most valuable position in CIGNA Corporation (NYSE:CI), worth close to $438 million billion, accounting for 6.9% of its total 13F portfolio. Sitting at the No. 2 spot is Fir Tree, managed by Jeffrey Tannenbaum, which held a $245 million position; the fund has 6.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Larry Robbins’s Glenview Capital, Lee Ainslie’s Maverick Capital and Daniel S. Och’s OZ Management.

Because CIGNA Corporation (NYSE:CI) has faced bearish sentiment from the smart money, it’s safe to say that there was a specific group of money managers that decided to sell off their entire stakes heading into 2013. It’s worth mentioning that Andreas Halvorsen’s Viking Global dumped the largest investment of all the hedgies we track, totaling an estimated $50 million in stock.. Dan Loeb’s fund, Third Point, also cut its stock, about $37 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 5 funds heading into 2013.

What have insiders been doing with CIGNA Corporation (NYSE:CI)?

Bullish insider trading is best served when the company in focus has seen transactions within the past half-year. Over the latest six-month time period, CIGNA Corporation (NYSE:CI) has experienced 1 unique insiders buying, and 6 insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned tactics, retail investors must always keep an eye on hedge fund and insider trading sentiment, and CIGNA Corporation (NYSE:CI) is an important part of this process.

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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

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!