With the second-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the third quarter of 2021. One of these stocks was Newmont Corporation (NYSE:NEM).
Newmont Corporation (NYSE:NEM) investors should pay attention to an increase in enthusiasm from smart money in recent months. Newmont Corporation (NYSE:NEM) was in 55 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 55. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that NEM isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Rajiv Jain of GQG Partners
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Do Hedge Funds Think NEM Is A Good Stock To Buy Now?
Heading into the third quarter of 2021, a total of 55 of the hedge funds tracked by Insider Monkey were long this stock, a change of 28% from one quarter earlier. On the other hand, there were a total of 55 hedge funds with a bullish position in NEM a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Newmont Corporation (NYSE:NEM) was held by GQG Partners, which reported holding $255.1 million worth of stock at the end of June. It was followed by Renaissance Technologies with a $248.5 million position. Other investors bullish on the company included AQR Capital Management, PEAK6 Capital Management, and Adage Capital Management. In terms of the portfolio weights assigned to each position Ariose Capital allocated the biggest weight to Newmont Corporation (NYSE:NEM), around 17.96% of its 13F portfolio. Heathbridge Capital Management is also relatively very bullish on the stock, designating 8.73 percent of its 13F equity portfolio to NEM.
Consequently, key hedge funds were breaking ground themselves. GQG Partners, managed by Rajiv Jain, established the largest position in Newmont Corporation (NYSE:NEM). GQG Partners had $255.1 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $35.6 million investment in the stock during the quarter. The other funds with brand new NEM positions are Ryan Caldwell’s Chiron Investment Management, MacKenzie B. Davis and Kenneth L. Settles Jr’s SailingStone Capital Partners, and Sander Gerber’s Hudson Bay Capital Management.
Let’s check out hedge fund activity in other stocks similar to Newmont Corporation (NYSE:NEM). We will take a look at Pinterest, Inc. (NYSE:PINS), Keurig Dr Pepper Inc. (NASDAQ:KDP), The Kraft Heinz Company (NASDAQ:KHC), Prudential Public Limited Company (NYSE:PUK), Southern Copper Corporation (NYSE:SCCO), KLA Corporation (NASDAQ:KLAC), and America Movil SAB de CV (NYSE:AMX). All of these stocks’ market caps match NEM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PINS | 63 | 2915471 | -20 |
| KDP | 28 | 1197414 | -2 |
| KHC | 33 | 13577456 | 0 |
| PUK | 4 | 9037 | 2 |
| SCCO | 23 | 552258 | -4 |
| KLAC | 45 | 1374639 | 5 |
| AMX | 13 | 114474 | -2 |
| Average | 29.9 | 2820107 | -3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 29.9 hedge funds with bullish positions and the average amount invested in these stocks was $2820 million. That figure was $1256 million in NEM’s case. Pinterest, Inc. (NYSE:PINS) is the most popular stock in this table. On the other hand Prudential Public Limited Company (NYSE:PUK) is the least popular one with only 4 bullish hedge fund positions. Newmont Corporation (NYSE:NEM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NEM is 83.2. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 22.9% in 2021 through October 1st and beat the market again by 5.6 percentage points. Unfortunately NEM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NEM were disappointed as the stock returned -14.7% since the end of June (through 10/1) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Newmont Corp (NYSE:NEM)
Follow Newmont Corp (NYSE:NEM)
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Disclosure: None. This article was originally published at Insider Monkey.
