Do Hedge Funds Love New Gold Inc. (USA) (NGD)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. It’s worth mentioning that Jean-Marie Eveillard’s First Eagle Investment Management got rid of the biggest position of all the investors followed by Insider Monkey, totaling an estimated $43.7 million in stock, and Jacob Gottlieb’s Visium Asset Management was right behind this move, as the fund sold off about $5 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as New Gold Inc. (USA) (NYSEMKT:NGD) but similarly valued. We will take a look at Visteon Corp (NYSE:VC), Laredo Petroleum Holdings Inc (NYSE:LPI), InterOil Corporation (USA) (NYSE:IOC), and Eastgroup Properties Inc (NYSE:EGP). All of these stocks’ market caps are closest to NGD’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $334 million. That figure was $113 million in NGD’s case. Visteon Corp (NYSE:VC) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only 8 bullish hedge fund positions. New Gold Inc. (USA) (NYSEMKT:NGD) 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 VC might be a better candidate to consider taking a long position in.

Disclosure: None