Five Uranium Stocks to Buy According to Hedge Funds

BHP Billiton Limited (ADR) (NYSE:BHP)

BHP Billiton Limited (ADR) (NYSE:BHP) was in the portfolios of 19 hedge funds in our system at the end of the third quarter, compared to 17 funds a quarter earlier. Dmitry Balyasny’s Balyasny Asset Management was a notable elite fund holder with over 1.9 million shares of the company. Recently, Moody’s changed their rating for the Australia-based metals company to ‘Stable’ from ‘Negative’.  The firm said that BHP will continue to experience margin improvement and increased free cash flow generation over the next 12-to-18 months. BHP’s CEO Andrew Mackenzie said in statement on third quarter earnings call that “capital discipline”, improved productivity, burgeoning volumes of copper, iron ore, metallurgical coal and steadier markets will result in strong free cash flows in the near future.

Rio Tinto plc (ADR) (NYSE:RIO)

A total of 18 hedge funds in our database own $394.22 million worth of Rio Tinto plc (ADR) (NYSE:RIO)’s shares, as of the end of the third quarter, down from 21 funds a quarter earlier. Robert Bishop’s Impala Asset Management stands out among these investors with 3.36 million shares of the company. The London-based mining company recently fired two of its senior executives after an internal probe found them guilty of $10.5 million embezzlement. Amid uncertain future prospects in the commodity sector, the second largest mining company in the world recently said it will cut its spending to $3.5 billion for 2016, down from the previous estimate of $4 billion. Rio’s stock is up over 41% year-to-date.

 Uranium Energy Corp. (NYSEMKT:UEC)

Just 4 hedge funds in our database owned shares of the Texas-based Uranium Energy Corp. (NYSEMKT:UEC), compared to 6 funds a quarter earlier. The company’s CFO Pat Obara sold 50,000 shares of the stock in a transaction November 2. Eric Sprott’s Sprott Asset Management owns 179,636 shares of the company. The stock has lost 16% year-to-date.

Disclosure: none