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Is Cosan Limited (USA) (CZZ) Going to Burn These Hedge Funds?

Cosan Limited (USA) (NYSE:CZZ) has experienced an increase in activity from the world’s largest hedge funds recently.

To the average investor, there are many indicators investors can use to track stocks. A couple of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the broader indices by a significant amount (see just how much).

Cosan Limited (USA) (NYSE:CZZ)

Equally as beneficial, bullish insider trading activity is another way to parse down the marketplace. Obviously, there are lots of stimuli for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if investors know what to do (learn more here).

With all of this in mind, it’s important to take a glance at the latest action regarding Cosan Limited (USA) (NYSE:CZZ).

How are hedge funds trading Cosan Limited (USA) (NYSE:CZZ)?

In preparation for this quarter, a total of 16 of the hedge funds we track were long in this stock, a change of 14% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings substantially.

When looking at the hedgies we track, Highbridge Capital Management, managed by Glenn Russell Dubin, holds the biggest position in Cosan Limited (USA) (NYSE:CZZ). Highbridge Capital Management has a $517.4 million position in the stock, comprising 6% of its 13F portfolio. Coming in second is McKinley Capital Management, managed by Robert B. Gillam, which held a $18.3 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Other peers that are bullish include Tony Chedraoui’s Tyrus Capital, John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’s Renaissance Technologies.

As industrywide interest jumped, key hedge funds were breaking ground themselves. Tyrus Capital, managed by Tony Chedraoui, initiated the largest position in Cosan Limited (USA) (NYSE:CZZ). Tyrus Capital had 9.6 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $0.5 million position during the quarter. The other funds with new positions in the stock are Richard Driehaus’s Driehaus Capital, Matthew Tewksbury’s Stevens Capital Management, and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.

Insider trading activity in Cosan Limited (USA) (NYSE:CZZ)

Bullish insider trading is most useful when the company in question has seen transactions within the past half-year. Over the last half-year time period, Cosan Limited (USA) (NYSE:CZZ) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results shown by the aforementioned strategies, everyday investors must always monitor hedge fund and insider trading activity, and Cosan Limited (USA) (NYSE:CZZ) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds