Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Kinross Gold Corporation (USA) (NYSE:KGC) has experienced a decrease in support from the world’s most elite money managers lately. KGC was in 21 hedge funds’ portfolios at the end of the third quarter of 2015. There were 23 hedge funds in our database with KGC holdings at the end of the previous quarter. At the end of this article we will also compare KGC to other stocks including Hilltop Holdings Inc. (NYSE:HTH), Barnes Group Inc. (NYSE:B), and Globus Medical Inc (NYSE:GMED) to get a better sense of its popularity.
Follow Kinross Gold Corp (NYSE:KGC)
Follow Kinross Gold Corp (NYSE:KGC)
Today there are many indicators shareholders put to use to appraise their stock investments. Two of the most under-the-radar indicators are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the best investment managers can trounce their index-focused peers by a very impressive margin (see the details here).
With all of this in mind, let’s take a glance at the recent action regarding Kinross Gold Corporation (USA) (NYSE:KGC).
Hedge fund activity in Kinross Gold Corporation (USA) (NYSE:KGC)
At the end of the third quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 9% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, David Iben’s Kopernik Global Investors has the most valuable position in Kinross Gold Corporation (USA) (NYSE:KGC), worth close to $53.3 million, accounting for 11.1% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $50.5 million stake; 0.1% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions comprise Cliff Asness’s AQR Capital Management, Joel Greenblatt’s Gotham Asset Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Due to the fact that Kinross Gold Corporation (USA) (NYSE:KGC) has experienced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedgies that elected to cut their entire stakes in the third quarter. At the top of the heap, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners sold off the biggest investment of the 700 funds monitored by Insider Monkey, valued at close to $0.3 million in call options. Bart Baum’s fund, Ionic Capital Management, also dropped its call options, about $0.1 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks similar to Kinross Gold Corporation (USA) (NYSE:KGC). We will take a look at Hilltop Holdings Inc. (NYSE:HTH), Barnes Group Inc. (NYSE:B), Globus Medical Inc (NYSE:GMED), and Terex Corporation (NYSE:TEX). This group of stocks’ market valuations are similar to KGC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HTH | 19 | 49050 | -2 |
| B | 13 | 57419 | -6 |
| GMED | 23 | 85088 | 3 |
| TEX | 23 | 255876 | -5 |
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 $112 million. That figure was $148 million in KGC’s case. Terex Corporation (NYSE:TEX) and Globus Medical Inc (NYSE:GMED) are leading the popularity contest, while Barnes Group Inc. (NYSE:B) is the laggard with only 13 bullish hedge fund positions. Kinross Gold Corporation (USA) (NYSE:KGC) is not the most popular stock in this group, but hedge fund interest is still above average. Although this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GMED might be a better candidate to consider a long position.
