Goldcorp Inc. (USA) (GG): All That Glitters May Not Be Gold

The market has been volatile due to elections and the potential of another Federal Reserve rate increase. Small cap stocks have been on a tear, as the Russell 2000 ETF (IWM) has outperformed the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of June. SEC filings and hedge fund investor letters indicate that the smart money seems to be getting back in stocks, and the funds’ movements is one of the reasons why small-cap stocks are red hot. In this article, we analyze what the smart money thinks of Goldcorp Inc. (USA) (NYSE:GG) and find out how it is affected by hedge funds’ moves.

Is Goldcorp Inc. (USA) (NYSE:GG) ready to rally soon? The smart money is reducing their bets on the stock. The number of long hedge fund positions dropped by 4 recently. GG was in 24 hedge funds’ portfolios at the end of September. There were 28 hedge funds in our database with GG positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as CenturyLink, Inc. (NYSE:CTL), Expedia Inc (NASDAQ:EXPE), and Liberty Interactive Corp (NASDAQ:QVCA) to gather more data points.

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Hedge fund activity in Goldcorp Inc. (USA) (NYSE:GG)

Heading into the fourth quarter of 2016, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 14% drop from one quarter earlier, as hedge fund ownership of the stock fell to a 5-quarter low. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the biggest position in Goldcorp Inc. (USA) (NYSE:GG). Arrowstreet Capital has a $166.2 million position in the stock. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $46.5 million position. Other peers with similar optimism contain Ken Griffin’s Citadel Investment Group, Ray Dalio’s Bridgewater Associates, and John Horseman’s Horseman Capital Management.