Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
CoreSite Realty Corp (NYSE:COR) investors should be aware of an increase in hedge fund sentiment in recent months. At the end of this article we will also compare COR to other stocks including Dreamworks Animation Skg Inc (NASDAQ:DWA), Penn National Gaming, Inc (NASDAQ:PENN), and Hawaiian Holdings, Inc. (NASDAQ:HA) to get a better sense of its popularity.
Follow Coresite Realty Corp (NYSE:COR)
Follow Coresite Realty Corp (NYSE:COR)
In the financial world, there are tons of formulas shareholders use to assess publicly traded companies. Some of the most innovative formulas are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can trounce the market by a superb margin (see the details here).
Now, let’s take a peek at the fresh action surrounding CoreSite Realty Corp (NYSE:COR).
What does the smart money think about CoreSite Realty Corp (NYSE:COR)?
Heading into Q4, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Millennium Management, managed by Israel Englander, holds the largest position in CoreSite Realty Corp (NYSE:COR). Millennium Management has a $56.5 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Renaissance Technologies, which holds a $13.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that hold long positions encompass Louis Bacon’s Moore Global Investments, Richard Driehaus’ Driehaus Capital and Cliff Asness’ AQR Capital Management.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Moore Global Investments created the largest position in CoreSite Realty Corp (NYSE:COR). Moore Global Investments had $13.3 million invested in the company at the end of the quarter. Driehaus Capital also made a $3.6 million investment in the stock during the quarter. The other funds with brand new COR positions are Ken Griffin’s Citadel Investment Group, Chao Ku’s Nine Chapters Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s also examine hedge fund activity in other stocks similar to CoreSite Realty Corp (NYSE:COR). These stocks are Dreamworks Animation Skg Inc (NASDAQ:DWA), Penn National Gaming, Inc (NASDAQ:PENN), Hawaiian Holdings, Inc. (NASDAQ:HA), and DigitalGlobe Inc (NYSE:DGI). This group of stocks’ market values match COR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DWA | 9 | 493527 | 1 |
| PENN | 35 | 472397 | 6 |
| HA | 22 | 186003 | -2 |
| DGI | 18 | 124024 | -7 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $319 million. That figure was $92 million in COR’s case. Penn National Gaming, Inc (NASDAQ:PENN) is the most popular stock in this table. On the other hand Dreamworks Animation Skg Inc (NASDAQ:DWA) is the least popular one with only 9 bullish hedge fund positions. CoreSite Realty Corp (NYSE:COR) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PENN might be a better candidate to consider a long position.
