Is Taseko Mines Limited (TGB) A Good Stock To Buy?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on Taseko Mines Limited (NYSE:TGB).

Is TGB a good stock to buy? Hedge fund interest in Taseko Mines Limited (NYSE:TGB) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that TGB isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). At the end of this article we will also compare TGB to other stocks including Summit Therapeutics Inc. (NASDAQ:SMMT), Foghorn Therapeutics Inc. (NASDAQ:FHTX), and Atlanticus Holdings Corp (NASDAQ:ATLC) to get a better sense of its popularity.

At the moment there are a large number of indicators market participants use to grade stocks. Two of the most under-the-radar indicators are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace their index-focused peers by a healthy amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

David Siegel of Two Sigma Advisors

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we’re going to check out the key hedge fund action surrounding Taseko Mines Limited (NYSE:TGB).

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

At first quarter’s end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. By comparison, 4 hedge funds held shares or bullish call options in TGB a year ago. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions).

Among these funds, Renaissance Technologies held the most valuable stake in Taseko Mines Limited (NYSE:TGB), which was worth $15.5 million at the end of the fourth quarter. On the second spot was Moore Global Investments which amassed $2.9 million worth of shares. Two Sigma Advisors, BlueCrest Capital Mgmt., and Citadel Investment Group 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 Moore Global Investments allocated the biggest weight to Taseko Mines Limited (NYSE:TGB), around 0.04% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, dishing out 0.02 percent of its 13F equity portfolio to TGB.

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Moore Global Investments).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Taseko Mines Limited (NYSE:TGB) but similarly valued. These stocks are Summit Therapeutics Inc. (NASDAQ:SMMT), Foghorn Therapeutics Inc. (NASDAQ:FHTX), Atlanticus Holdings Corp (NASDAQ:ATLC), AVITA Medical, Inc. (NASDAQ:RCEL), Crescent Capital BDC, Inc. (NASDAQ:CCAP), Hoegh LNG Partners LP (NYSE:HMLP), and FLEX LNG Ltd. (NYSE:FLNG). All of these stocks’ market caps are closest to TGB’s market cap.

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As you can see these stocks had an average of 6.4 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was $21 million in TGB’s case. AVITA Medical, Inc. (NASDAQ:RCEL) is the most popular stock in this table. On the other hand FLEX LNG Ltd. (NYSE:FLNG) is the least popular one with only 1 bullish hedge fund positions. Taseko Mines Limited (NYSE:TGB) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TGB is 50.2. 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. 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 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. A small number of hedge funds were also right about betting on TGB as the stock returned 23.8% since the end of the first quarter (through 6/25) and outperformed the market by an even larger margin.

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