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.
Coeur Mining Inc (NYSE:CDE) was in 26 hedge funds’ portfolios at the end of the third quarter of 2016. CDE has seen an increase in hedge fund sentiment recently. There were 21 hedge funds in our database with CDE holdings 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 Itron, Inc. (NASDAQ:ITRI), Financial Engines Inc (NASDAQ:FNGN), and Magellan Health Services Inc (NASDAQ:MGLN) to gather more data points.
Follow Coeur Mining Inc. (NYSE:CDE)
Follow Coeur Mining Inc. (NYSE:CDE)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, we’re going to go over the new action surrounding Coeur Mining Inc (NYSE:CDE).
What have hedge funds been doing with Coeur Mining Inc (NYSE:CDE)?
At the end of the third quarter, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 24% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies, managed by Jim Simons, holds the number one position in Coeur d’Alene Mines Corporation (NYSE:CDE). Renaissance Technologies has a $61.8 million position in the stock. Coming in second is Thomas E. Claugus of GMT Capital, with a $56.1 million position; 1.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money with similar optimism comprise D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and Himanshu H. Shah’s Shah Capital Management.
As industrywide interest jumped, some big names were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the biggest position in Coeur Mining Inc (NYSE:CDE). Adage Capital Management had $5.9 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $3.3 million position during the quarter. The other funds with brand new CDE positions are Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Michael Platt and William Reeves’ BlueCrest Capital Mgmt., and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Coeur Mining Inc (NYSE:CDE) but similarly valued. These stocks are Itron, Inc. (NASDAQ:ITRI), Financial Engines Inc (NASDAQ:FNGN), Magellan Health Services Inc (NASDAQ:MGLN), and Columbia Banking System Inc (NASDAQ:COLB). This group of stocks’ market caps resemble CDE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ITRI | 19 | 447778 | 3 |
| FNGN | 13 | 48815 | 2 |
| MGLN | 19 | 198682 | -2 |
| COLB | 6 | 83231 | -4 |
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $195 million. That figure was $287 million in CDE’s case. Itron, Inc. (NASDAQ:ITRI) is the most popular stock in this table. On the other hand Columbia Banking System Inc (NASDAQ:COLB) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Coeur Mining Inc (NYSE:CDE) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
