The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Southern Copper Corporation (NYSE:SCCO).
Southern Copper Corporation (NYSE:SCCO) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that SCCO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare SCCO to other stocks including Canadian Pacific Railway Limited (NYSE:CP), Newmont Corporation (NYSE:NEM), and Canadian Natural Resources Limited (NYSE:CNQ) to get a better sense of its popularity.
Jim Simons of Renaissance Technologies
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind we’re going to analyze the latest hedge fund action surrounding Southern Copper Corporation (NYSE:SCCO).
Do Hedge Funds Think SCCO Is A Good Stock To Buy Now?
At the end of September, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SCCO over the last 25 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in Southern Copper Corporation (NYSE:SCCO). Fisher Asset Management has a $203.1 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $38.3 million position; 0.1% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors that hold long positions consist of Renaissance Technologies, D. E. Shaw’s D E Shaw and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital. In terms of the portfolio weights assigned to each position Navellier & Associates allocated the biggest weight to Southern Copper Corporation (NYSE:SCCO), around 0.41% of its 13F portfolio. Hosking Partners is also relatively very bullish on the stock, designating 0.28 percent of its 13F equity portfolio to SCCO.
Seeing as Southern Copper Corporation (NYSE:SCCO) has witnessed bearish sentiment from hedge fund managers, it’s safe to say that there exists a select few funds who were dropping their entire stakes in the third quarter. At the top of the heap, Ray Dalio’s Bridgewater Associates sold off the largest investment of the “upper crust” of funds monitored by Insider Monkey, worth an estimated $15 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also dropped its stock, about $1 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Southern Copper Corporation (NYSE:SCCO) but similarly valued. We will take a look at Canadian Pacific Railway Limited (NYSE:CP), Newmont Corporation (NYSE:NEM), Canadian Natural Resources Limited (NYSE:CNQ), National Grid plc (NYSE:NGG), Spotify Technology S.A. (NYSE:SPOT), Dow Inc. (NYSE:DOW), and Simon Property Group, Inc (NYSE:SPG). All of these stocks’ market caps are similar to SCCO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CP | 38 | 6638996 | 13 |
| NEM | 48 | 774451 | -7 |
| CNQ | 27 | 956988 | 0 |
| NGG | 5 | 314057 | -2 |
| SPOT | 48 | 3038733 | 0 |
| DOW | 42 | 747419 | 2 |
| SPG | 38 | 726426 | 1 |
| Average | 35.1 | 1885296 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 35.1 hedge funds with bullish positions and the average amount invested in these stocks was $1885 million. That figure was $403 million in SCCO’s case. Newmont Corporation (NYSE:NEM) is the most popular stock in this table. On the other hand National Grid plc (NYSE:NGG) is the least popular one with only 5 bullish hedge fund positions. Southern Copper Corporation (NYSE:SCCO) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for SCCO is 51.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. A small number of hedge funds were also right about betting on SCCO as the stock returned 10.7% since the end of the third quarter (through 12/9) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
