Canadian Imperial Bank of Commerce (USA) (CM): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key money managers have jumped into Canadian Imperial Bank of Commerce (USA) (NYSE:CM) headfirst. PEAK6 Capital Management, led by Matthew Hulsizer, initiated the biggest call position in Canadian Imperial Bank of Commerce (USA) (NYSE:CM). PEAK6 Capital Management had $3.9 million invested in the company at the end of the quarter. Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors also made a $2.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Sander Gerber’s Hudson Bay Capital Management, Ken Griffin’s Citadel Investment Group, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Canadian Imperial Bank of Commerce (USA) (NYSE:CM) but similarly valued. We will take a look at Waste Management, Inc. (NYSE:WM), The Blackstone Group L.P. (NYSE:BX), Activision Blizzard, Inc. (NASDAQ:ATVI), and Aon PLC (NYSE:AON). This group of stocks’ market values resemble CM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WM 34 2122045 0
BX 32 403795 0
ATVI 64 4243407 -4
AON 31 2565907 0

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $2.33 billion. That figure was $286 million in CM’s case. Activision Blizzard, Inc. (NASDAQ:ATVI) is the most popular stock in this table. On the other hand Aon PLC (NYSE:AON) is the least popular one with only 31 bullish hedge fund positions. Compared to these stocks Canadian Imperial Bank of Commerce (USA) (NYSE:CM) is even less popular than AON. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None