Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

This Metric Says You Are Smart to Buy Cosan Limited (USA) (NYSE:CZZ)

Page 1 of 2

Cosan Limited (USA) (NYSE:CZZ) was in 13 hedge funds’ portfolio at the end of December. CZZ investors should pay attention to an increase in activity from the world’s largest hedge funds lately. There were 8 hedge funds in our database with CZZ holdings at the end of the previous quarter.

Cosan Limited (USA) (NYSE:CZZ)

To most market participants, hedge funds are perceived as underperforming, outdated investment tools of the past. While there are greater than 8000 funds trading today, we at Insider Monkey look at the masters of this group, about 450 funds. It is widely believed that this group oversees the majority of the smart money’s total capital, and by tracking their top stock picks, we have figured out a number of investment strategies that have historically outperformed the S&P 500 index. 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 outperformed the S&P 500 index by 24 percentage points in 7 months (see the details here).

Equally as important, positive insider trading sentiment is a second way to parse down the investments you’re interested in. Obviously, there are many stimuli for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).

With all of this in mind, it’s important to take a peek at the key action surrounding Cosan Limited (USA) (NYSE:CZZ).

What does the smart money think about Cosan Limited (USA) (NYSE:CZZ)?

At the end of the fourth quarter, a total of 13 of the hedge funds we track were long in this stock, a change of 63% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, Highbridge Capital Management, managed by Glenn Russell Dubin, holds the largest position in Cosan Limited (USA) (NYSE:CZZ). Highbridge Capital Management has a $548.1 million position in the stock, comprising 8.6% of its 13F portfolio. On Highbridge Capital Management’s heels is Robert B. Gillam of McKinley Capital Management, with a $16.8 million position; 0.9% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies and John Overdeck and David Siegel’s Two Sigma Advisors.

As aggregate interest increased, some big names were leading the bulls’ herd. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the biggest position in Cosan Limited (USA) (NYSE:CZZ). Highbridge Capital Management had 548.1 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also initiated a $16.8 million position during the quarter. The other funds with brand new CZZ positions are John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group, and Andrew R. Midler’s Savitr Capital.

How are insiders trading Cosan Limited (USA) (NYSE:CZZ)?

Insider purchases made by high-level executives is most useful when the primary stock in question has seen transactions within the past six months. Over the last six-month time period, Cosan Limited (USA) (NYSE:CZZ) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Cosan Limited (USA) (NYSE:CZZ). These stocks are Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF), Mondelez International Inc (NASDAQ:MDLZ), The Hershey Company (NYSE:HSY), and Tootsie Roll Industries, Inc. (NYSE:TR). This group of stocks are in the confectioners industry and their market caps are closest to CZZ’s market cap.

Page 1 of 2
Loading Comments...