Here is What Hedge Funds Think About Chimera Investment Corporation (CIM)

Due to the fact that Chimera Investment Corporation (NYSE:CIM) has faced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of funds that slashed their full holdings heading into Q4. At the top of the heap, Joshua Friedman and Mitchell Julis’s Canyon Capital Advisors cut the biggest stake of the “upper crust” of funds monitored by Insider Monkey, totaling close to $25.7 million in stock, and Joseph A. Jolson’s Harvest Capital Strategies was right behind this move, as the fund cut about $1.3 million worth of shares. These moves are interesting, as total hedge fund interest was cut by 1 fund heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Chimera Investment Corporation (NYSE:CIM) but similarly valued. We will take a look at Choice Hotels International, Inc. (NYSE:CHH), SouFun Holdings Ltd (NYSE:SFUN), Home Bancshares Inc (NASDAQ:HOMB), and Southwest Gas Corporation (NYSE:SWX). This group of stocks’ market values matches Chimera Investment Corporation (NYSE:CIM)’s market value.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $143 million. That figure was $291 million in Chimera Investment Corporation (NYSE:CIM)’s case. SouFun Holdings Ltd (NYSE:SFUN) is the most popular stock in this table. On the other hand, Choice Hotels International, Inc. (NYSE:CHH) is the least popular one with only 12 bullish hedge fund positions. Chimera Investment Corporation (NYSE:CIM) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SouFun Holdings Ltd (NYSE:SFUN) might be a better candidate to consider a long position.