Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th. In this article we are going to take a look at smart money sentiment towards Timmins Gold Corp (NYSEMKT:TGD).
Is Timmins Gold Corp (NYSEMKT:TGD) going to take off soon? Prominent investors are taking a bearish view. The number of bullish hedge fund positions fell by 1 lately. At the end of this article we will also compare Timmins Gold Corp (NYSEMKT:TGD) to other stocks including MediciNova, Inc. (NASDAQ:MNOV), Sky-mobi Ltd (ADR) (NASDAQ:MOBI), and Transition Therapeutics Inc (USA) (NASDAQ:TTHI) to get a better sense of its popularity.
If you’d ask most traders, hedge funds are seen as worthless, outdated financial tools of the past. While there are greater than 8000 funds in operation at present, our researchers choose to focus on the top tier of this group, approximately 700 funds. These hedge fund managers shepherd bulk of all hedge funds’ total capital, and by watching their matchless equity investments, Insider Monkey has spotted a number of investment strategies that have historically surpassed Mr. Market. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Now, we’re going to review the key action encompassing Timmins Gold Corp (NYSEMKT:TGD).
How have hedgies been trading Timmins Gold Corp (NYSEMKT:TGD)?
Heading into Q4, a total of 5 of the hedge funds tracked by Insider Monkey were long in this stock, a decline of 17% from the previous quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund holdings data compiled by Insider Monkey, Peter Franklin Palmedo’s Sun Valley Gold had the most valuable position in Timmins Gold Corp (NYSEMKT:TGD), worth close to $1.6 million, comprising 0.1% of its total 13F portfolio. The second most bullish hedge fund manager is Renaissance Technologies, holding a $0.5 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include Kevin Michael Ulrich and Anthony Davis’ Anchorage Advisors, D E Shaw and Eric Sprott’s Sprott Asset Management.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: GLG Partners. 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 none of the 700+ hedge funds tracked by Insider Monkey identified Timmins Gold Corp (NYSEMKT:TGD) as a viable investment and initiated a position in the stock.
Let’s go over hedge fund activity in other stocks similar to Timmins Gold Corp (NYSEMKT:TGD). We will take a look at MediciNova, Inc. (NASDAQ:MNOV), Sky-mobi Ltd (ADR) (NASDAQ:MOBI), Transition Therapeutics Inc (USA) (NASDAQ:TTHI), and Westell Technologies Inc. (NASDAQ:WSTL). This group of stocks’ market caps resemble Timmins Gold Corp (NYSEMKT:TGD)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MNOV | 4 | 2439 | 2 |
| MOBI | 5 | 2169 | -1 |
| TTHI | 5 | 2598 | -1 |
| WSTL | 5 | 13218 | 0 |
As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $5 million, compared to $3 millions in Timmins Gold Corp (NYSEMKT:TGD)’s case. Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is the most popular stock in this table. On the other hand, MediciNova, Inc. (NASDAQ:MNOV) is the least popular one with only four long positions held by the funds we track. Timmins Gold Corp (NYSEMKT:TGD) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Sky-mobi Ltd (ADR) (NASDAQ:MOBI) might be a better candidate to consider a long position.
