As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds’ thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Coeur Mining, Inc. (NYSE:CDE).
Is Coeur Mining, Inc. (NYSE:CDE) a healthy stock for your portfolio? Prominent investors were becoming more confident. The number of long hedge fund positions rose by 1 lately. Coeur Mining, Inc. (NYSE:CDE) was in 19 hedge funds’ portfolios at the end of June. The all time high for this statistic is 26. Our calculations also showed that CDE isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the eyes of most traders, hedge funds are perceived as slow, outdated financial vehicles of the past. While there are over 8000 funds in operation at the moment, Our experts look at the elite of this group, approximately 850 funds. It is estimated that this group of investors manage most of the smart money’s total capital, and by monitoring their top investments, Insider Monkey has discovered a few investment strategies that have historically outpaced Mr. Market. Insider Monkey’s flagship short hedge fund strategy outpaced the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.
Chuck Royce of Royce & Associates
Now we’re going to view the fresh hedge fund action regarding Coeur Mining, Inc. (NYSE:CDE).
Do Hedge Funds Think CDE Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 19 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from the first quarter of 2020. On the other hand, there were a total of 14 hedge funds with a bullish position in CDE a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Royce & Associates held the most valuable stake in Coeur Mining, Inc. (NYSE:CDE), which was worth $12.7 million at the end of the second quarter. On the second spot was D E Shaw which amassed $9.3 million worth of shares. Sprott Asset Management, Citadel Investment Group, and ExodusPoint Capital 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 Coeur Mining, Inc. (NYSE:CDE), around 0.53% of its 13F portfolio. Manatuck Hill Partners is also relatively very bullish on the stock, setting aside 0.13 percent of its 13F equity portfolio to CDE.
As industrywide interest jumped, key money managers have jumped into Coeur Mining, Inc. (NYSE:CDE) headfirst. Royce & Associates, managed by Chuck Royce, created the biggest position in Coeur Mining, Inc. (NYSE:CDE). Royce & Associates had $12.7 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $5.1 million position during the quarter. The other funds with brand new CDE positions are Dmitry Balyasny’s Balyasny Asset Management, Brandon Haley’s Holocene Advisors, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s now review hedge fund activity in other stocks similar to Coeur Mining, Inc. (NYSE:CDE). We will take a look at Inter Parfums, Inc. (NASDAQ:IPAR), Avaya Holdings Corp. (NYSE:AVYA), Harmony Gold Mining Co. (NYSE:HMY), Hub Group Inc (NASDAQ:HUBG), Prothena Corporation plc (NASDAQ:PRTA), Telos Corporation (NASDAQ:TLS), and First Midwest Bancorp Inc (NASDAQ:FMBI). This group of stocks’ market valuations resemble CDE’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IPAR | 19 | 100882 | 10 |
| AVYA | 37 | 435949 | 0 |
| HMY | 11 | 102386 | 3 |
| HUBG | 24 | 205728 | 5 |
| PRTA | 20 | 888175 | 3 |
| TLS | 19 | 228954 | 4 |
| FMBI | 17 | 107837 | 4 |
| Average | 21 | 295702 | 4.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $296 million. That figure was $59 million in CDE’s case. Avaya Holdings Corp. (NYSE:AVYA) is the most popular stock in this table. On the other hand Harmony Gold Mining Co. (NYSE:HMY) is the least popular one with only 11 bullish hedge fund positions. Coeur Mining, Inc. (NYSE:CDE) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CDE is 43.3. 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 negative signal and 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 24% in 2021 through October 22nd and surpassed the market again by 1.6 percentage points. Unfortunately CDE wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CDE investors were disappointed as the stock returned -24.2% since the end of June (through 10/22) 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 most of these stocks already outperformed the market in 2021.
Follow Coeur Mining Inc. (NYSE:CDE)
Follow Coeur Mining Inc. (NYSE:CDE)
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Disclosure: None. This article was originally published at Insider Monkey.
