Here is What Hedge Funds Think About Agnico Eagle Mines Limited (AEM)

The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Agnico Eagle Mines Limited (NYSE:AEM).

Agnico Eagle Mines Limited (NYSE:AEM) has experienced an increase in support from the world’s most elite money managers lately. Agnico Eagle Mines Limited (NYSE:AEM) was in 33 hedge funds’ portfolios at the end of September. The all time high for this statistic is 36. There were 29 hedge funds in our database with AEM holdings at the end of June. Our calculations also showed that AEM isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

David E. Shaw of D.E. Shaw

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 let’s take a glance at the new hedge fund action encompassing Agnico Eagle Mines Limited (NYSE:AEM).

Do Hedge Funds Think AEM Is A Good Stock To Buy Now?

At Q3’s end, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 14% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in AEM over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Renaissance Technologies held the most valuable stake in Agnico Eagle Mines Limited (NYSE:AEM), which was worth $133.2 million at the end of the third quarter. On the second spot was Alpine Associates which amassed $45.9 million worth of shares. Citadel Investment Group, D E Shaw, and Millennium Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Sprott Asset Management allocated the biggest weight to Agnico Eagle Mines Limited (NYSE:AEM), around 1.84% of its 13F portfolio. Alpine Associates is also relatively very bullish on the stock, setting aside 1.49 percent of its 13F equity portfolio to AEM.

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Agnico Eagle Mines Limited (NYSE:AEM) headfirst. Alpine Associates, managed by Robert Emil Zoellner, initiated the largest position in Agnico Eagle Mines Limited (NYSE:AEM). Alpine Associates had $45.9 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $23.6 million position during the quarter. The following funds were also among the new AEM investors: Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors, Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors, and Carl Tiedemann and Michael Tiedemann’s TIG Advisors.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Agnico Eagle Mines Limited (NYSE:AEM) but similarly valued. We will take a look at Campbell Soup Company (NYSE:CPB), LPL Financial Holdings Inc (NASDAQ:LPLA), Jones Lang LaSalle Inc (NYSE:JLL), Iron Mountain Incorporated (NYSE:IRM), Enel Americas S.A. (NYSE:ENIA), Tenaris S.A. (NYSE:TS), and Opendoor Technologies Inc. (NASDAQ:OPEN). This group of stocks’ market values match AEM’s market value.

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As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $895 million. That figure was $416 million in AEM’s case. LPL Financial Holdings Inc (NASDAQ:LPLA) is the most popular stock in this table. On the other hand Enel Americas S.A. (NYSE:ENIA) is the least popular one with only 9 bullish hedge fund positions. Agnico Eagle Mines Limited (NYSE:AEM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AEM is 79.4. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately AEM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on AEM were disappointed as the stock returned -3.3% since the end of September (through 11/30) 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.

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Disclosure: None. This article was originally published at Insider Monkey.

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