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Hedge Funds Are Selling Out of SLM Corp (SLM)

As we already know from media reports and hedge fund investor letters, many hedge funds lost money in the third quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with healthcare among them. Nevertheless, most investors decided to stick to their bullish theses and their long-term focus allows us to profit from the recent declines. In particular, let’s take a look at what hedge funds think about SLM Corp (NASDAQ:SLM) in this article.

SLM Corp (NASDAQ:SLM) investors should pay attention to a decrease in activity from the world’s largest hedge funds lately. SLM was in 20 hedge funds’ portfolios at the end of the third quarter of 2015. There were 26 hedge funds in our database with SLM holdings at the end of the quarter prior to that. At the end of this article we will also compare SLM to other stocks including Equity One, Inc. (NYSE:EQY), Western Alliance Bancorporation (NYSE:WAL), and Silgan Holdings Inc. (NASDAQ:SLGN) to get a better sense of its popularity.

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To most shareholders, hedge funds are assumed to be unimportant, old financial vehicles of years past. While there are over 8,000 funds with their doors open at present, we look at the crème de la crème of this group, approximately 700 funds. These investment experts orchestrate the lion’s share of the hedge fund industry’s total asset base, and by paying attention to their inimitable picks, Insider Monkey has found numerous investment strategies that have historically surpassed the broader indices. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points annually for a decade in their back tests.

With all of this in mind, let’s take a gander at the fresh action regarding SLM Corp (NASDAQ:SLM).

How have hedgies been trading SLM Corp (NASDAQ:SLM)?

At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 23% fall from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or had already accumulated large positions).

According to Insider Monkey’s hedge fund database, D E Shaw has the most valuable position in SLM Corp (NASDAQ:SLM), worth close to $41.8 million, amounting to 0.1% of its total 13F portfolio. The second-largest stake is held by Citadel Investment Group, led by Ken Griffin, holding a $36.5 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Some other peers that are bullish encompass Bain Capital’s Brookside Capital, Renaissance Technologies, and David Harding’s Winton Capital Management.

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