In the financial world, there are dozens of methods investors can use to analyze publicly traded companies. A duo of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can trounce the market by a solid margin (see just how much).
Equally as key, positive insider trading sentiment is a second way to look at the marketplace. As the old adage goes: there are many incentives for an upper level exec to sell shares of his or her company, but just one, very simple reason why they would buy. Various empirical studies have demonstrated the valuable potential of this method if shareholders know where to look (learn more here).
Thus, let’s study the recent info surrounding Corinthian Colleges Inc (NASDAQ:COCO).
How are hedge funds trading Corinthian Colleges Inc (NASDAQ:COCO)?
Heading into Q3, a total of 16 of the hedge funds we track were long in this stock, a change of -6% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings substantially.
According to our 13F database, Chuck Royce’s Royce & Associates had the biggest position in Corinthian Colleges Inc (NASDAQ:COCO), worth close to $9.3 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $6.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Robert Pitts’s Steadfast Capital Management, Lisa Rapuano’s Lane Five Capital and Himanshu H. Shah’s Shah Capital Management.
As Corinthian Colleges Inc (NASDAQ:COCO) has witnessed a fall in interest from upper-tier hedge fund managers, it’s easy to see that there exists a select few hedgies that elected to cut their full holdings in Q1. Intriguingly, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors said goodbye to the largest investment of the “upper crust” of funds we track, worth an estimated $0.4 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $0.1 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 1 funds in Q1.
Insider trading activity in Corinthian Colleges Inc (NASDAQ:COCO)
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time period, Corinthian Colleges Inc (NASDAQ:COCO) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Using the results demonstrated by our studies, average investors must always watch hedge fund and insider trading activity, and Corinthian Colleges Inc (NASDAQ:COCO) shareholders fit into this picture quite nicely.