We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Newmont Corporation (NYSE:NEM) based on that data.
Is Newmont Corporation (NYSE:NEM) a healthy stock for your portfolio? Money managers were becoming less hopeful. The number of bullish hedge fund positions were trimmed by 7 lately. Newmont Corporation (NYSE:NEM) was in 48 hedge funds’ portfolios at the end of September. The all time high for this statistic is 55. Our calculations also showed that NEM isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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. With all of this in mind we’re going to take a glance at the new hedge fund action regarding Newmont Corporation (NYSE:NEM).
Lee Ainslie of Maverick Capital
Do Hedge Funds Think NEM Is A Good Stock To Buy Now?
At Q3’s end, a total of 48 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% 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. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
More specifically, Renaissance Technologies was the largest shareholder of Newmont Corporation (NYSE:NEM), with a stake worth $173.4 million reported as of the end of September. Trailing Renaissance Technologies was AQR Capital Management, which amassed a stake valued at $129.4 million. Citadel Investment Group, Two Sigma Advisors, and D E Shaw 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 Heathbridge Capital Management allocated the biggest weight to Newmont Corporation (NYSE:NEM), around 8.49% of its 13F portfolio. Southport Management is also relatively very bullish on the stock, earmarking 5.16 percent of its 13F equity portfolio to NEM.
Because Newmont Corporation (NYSE:NEM) has witnessed falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers that decided to sell off their full holdings last quarter. Interestingly, Ray Dalio’s Bridgewater Associates cut the largest stake of the 750 funds monitored by Insider Monkey, comprising close to $25.1 million in stock. Sander Gerber’s fund, Hudson Bay Capital Management, also dropped its stock, about $9.1 million worth. These transactions are important to note, as total hedge fund interest fell by 7 funds last quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Newmont Corporation (NYSE:NEM) but similarly valued. We will take a look at Canadian Natural Resources Limited (NYSE:CNQ), National Grid plc (NYSE:NGG), Spotify Technology S.A. (NYSE:SPOT), Dow Inc. (NYSE:DOW), Simon Property Group, Inc (NYSE:SPG), Microchip Technology Incorporated (NASDAQ:MCHP), and Vodafone Group Plc (NASDAQ:VOD). 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 |
|---|---|---|---|
| CNQ | 27 | 956988 | 0 |
| NGG | 5 | 314057 | -2 |
| SPOT | 48 | 3038733 | 0 |
| DOW | 42 | 747419 | 2 |
| SPG | 38 | 726426 | 1 |
| MCHP | 41 | 1122273 | -9 |
| VOD | 18 | 613771 | 1 |
| Average | 31.3 | 1074238 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.3 hedge funds with bullish positions and the average amount invested in these stocks was $1074 million. That figure was $774 million in NEM’s case. Spotify Technology S.A. (NYSE:SPOT) is the most popular stock in this table. On the other hand National Grid plc (NYSE:NGG) is the least popular one with only 5 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 74.2. 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 28.6% in 2021 through November 30th 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 1.1% 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.
Follow Newmont Corp (NYSE:NEM)
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Disclosure: None. This article was originally published at Insider Monkey.
