Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Alamos Gold Inc (NYSE:AGI), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Alamos Gold Inc (NYSE:AGI) was in 10 hedge funds’ portfolios at the end of September. AGI investors should pay attention to a decrease in activity from the world’s largest hedge funds in recent months. There were 12 hedge funds in our database with AGI positions at the end of the previous quarter. Our calculations also showed that AGI isn’t among the 30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 6.3% year to date (through December 3rd) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 18 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Let’s take a gander at the new hedge fund action surrounding Alamos Gold Inc (NYSE:AGI).
What have hedge funds been doing with Alamos Gold Inc (NYSE:AGI)?
Heading into the fourth quarter of 2018, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -17% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards AGI over the last 13 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Alamos Gold Inc (NYSE:AGI) was held by Sun Valley Gold, which reported holding $25.8 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $20.6 million position. Other investors bullish on the company included Royce & Associates, Millennium Management, and Sprott Asset Management.
Because Alamos Gold Inc (NYSE:AGI) has witnessed a decline in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of fund managers that decided to sell off their full holdings by the end of the third quarter. Interestingly, Noam Gottesman’s GLG Partners dumped the largest stake of the 700 funds tracked by Insider Monkey, totaling an estimated $0.1 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund said goodbye to about $0.1 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Alamos Gold Inc (NYSE:AGI) but similarly valued. These stocks are Gulfport Energy Corporation (NASDAQ:GPOR), Theravance Biopharma Inc (NASDAQ:TBPH), Northwest Bancshares, Inc. (NASDAQ:NWBI), and Nuveen Preferred Securities Income Fund (NYSE:JPS). This group of stocks’ market valuations are similar to AGI’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GPOR | 20 | 236743 | 3 |
| TBPH | 11 | 774277 | -1 |
| NWBI | 9 | 66406 | 0 |
| JPS | 4 | 1486 | 0 |
| Average | 11 | 269728 | 0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $270 million. That figure was $69 million in AGI’s case. Gulfport Energy Corporation (NASDAQ:GPOR) is the most popular stock in this table. On the other hand Nuveen Preferred Securities Income Fund (NYSE:JPS) is the least popular one with only 4 bullish hedge fund positions. Alamos Gold Inc (NYSE:AGI) 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 GPOR might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
