Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4.5 years and analyze what the smart money thinks of CoreSite Realty Corp (NYSE:COR) based on that data and determine whether they were really smart about the stock.
Is CoreSite Realty Corp (NYSE:COR) going to take off soon? Hedge funds were in a bullish mood. The number of bullish hedge fund positions advanced by 2 lately. Our calculations also showed that COR isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.
In today’s marketplace there are a lot of formulas shareholders put to use to size up publicly traded companies. Some of the most under-the-radar formulas are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the top investment managers can outperform the broader indices by a significant amount (see the details here).
[caption id="attachment_30600" align="aligncenter" width="400"] Bruce Kovner of Caxton Associates LP[/caption]
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, on one site we found out that NBA champion Isiah Thomas is now the CEO of this cannabis company. The same site also talks about a snack manufacturer that’s growing at 30% annually. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so if you have any good ideas send us an email. With all of this in mind let's take a peek at the latest hedge fund action regarding CoreSite Realty Corp (NYSE:COR).
How are hedge funds trading CoreSite Realty Corp (NYSE:COR)?
At the end of the first quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the previous quarter. The graph below displays the number of hedge funds with bullish position in COR over the last 18 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
The largest stake in CoreSite Realty Corp (NYSE:COR) was held by Renaissance Technologies, which reported holding $106.7 million worth of stock at the end of September. It was followed by Citadel Investment Group with a $85.3 million position. Other investors bullish on the company included Fisher Asset Management, Winton Capital Management, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position Hill Winds Capital allocated the biggest weight to CoreSite Realty Corp (NYSE:COR), around 6.38% of its 13F portfolio. Marlowe Partners is also relatively very bullish on the stock, earmarking 3.52 percent of its 13F equity portfolio to COR.
Now, specific money managers have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, created the largest position in CoreSite Realty Corp (NYSE:COR). Balyasny Asset Management had $6.6 million invested in the company at the end of the quarter. David Steinberg and Eric Udoff's Marlowe Partners also made a $5.2 million investment in the stock during the quarter. The other funds with brand new COR positions are Bruce Kovner's Caxton Associates LP, Mike Vranos's Ellington, and Steve Cohen's Point72 Asset Management.
Let's check out hedge fund activity in other stocks similar to CoreSite Realty Corp (NYSE:COR). We will take a look at Chegg Inc (NYSE:CHGG), Robert Half International Inc. (NYSE:RHI), Flowers Foods, Inc. (NYSE:FLO), and National Instruments Corporation (NASDAQ:NATI). All of these stocks' market caps are closest to COR's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CHGG,34,302599,-5 RHI,26,247265,3 FLO,27,227639,7 NATI,29,706256,-1 Average,29,370940,1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $371 million. That figure was $267 million in COR's case. Chegg Inc (NYSE:CHGG) is the most popular stock in this table. On the other hand Robert Half International Inc. (NYSE:RHI) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks CoreSite Realty Corp (NYSE:COR) is even less popular than RHI. Hedge funds dodged a bullet by taking a bearish stance towards COR. Our calculations showed that the top 10 most popular hedge fund stocks returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 12.3% in 2020 through June 30th but managed to beat the market by 15.5 percentage points. Unfortunately COR wasn't nearly as popular as these 10 stocks (hedge fund sentiment was very bearish); COR investors were disappointed as the stock returned 5.5% during the second quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market so far in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.