Is Chimera Investment Corporation (CIM) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. It’s worth mentioning that Robert Raiff’s Raiff Partners cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, totaling about $2.4 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund sold off about $1 million worth of shares.

Let’s also examine 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 RLI Corp. (NYSE:RLI), Tech Data Corp (NASDAQ:TECD), Spirit Airlines Incorporated (NASDAQ:SAVE), and Owens-Illinois Inc (NYSE:OI). This group of stocks’ market values resemble CIM’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $361 million. That figure was $106 million in CIM’s case. Spirit Airlines Incorporated (NASDAQ:SAVE) is the most popular stock in this table. On the other hand RLI Corp. (NYSE:RLI) is the least popular one with only 9 bullish hedge fund positions. Chimera Investment Corporation (NYSE:CIM) 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 SAVE might be a better candidate to consider taking a long position in.

Disclosure: None