Is CoreSite Realty Corp (COR) Going to Burn These Hedge Funds?

With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Moore Global Investments created the largest position in CoreSite Realty Corp (NYSE:COR). Moore Global Investments had $13.3 million invested in the company at the end of the quarter. Driehaus Capital also made a $3.6 million investment in the stock during the quarter. The other funds with brand new COR positions are Ken Griffin’s Citadel Investment Group, Chao Ku’s Nine Chapters Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks similar to CoreSite Realty Corp (NYSE:COR). These stocks are Dreamworks Animation Skg Inc (NASDAQ:DWA), Penn National Gaming, Inc (NASDAQ:PENN), Hawaiian Holdings, Inc. (NASDAQ:HA), and DigitalGlobe Inc (NYSE:DGI). This group of stocks’ market values match COR’s market value.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $319 million. That figure was $92 million in COR’s case. Penn National Gaming, Inc (NASDAQ:PENN) is the most popular stock in this table. On the other hand Dreamworks Animation Skg Inc (NASDAQ:DWA) is the least popular one with only 9 bullish hedge fund positions. CoreSite Realty Corp (NYSE:COR) 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 PENN might be a better candidate to consider a long position.