The smart money is bailing on Goldcorp Inc. (USA) (NYSE:GG).
To the average investor, there are plenty of indicators shareholders can use to monitor Mr. Market. A couple of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can trounce the broader indices by a solid margin (see just how much).
Equally as useful, positive insider trading sentiment is a second way to analyze the world of equities. As the old adage goes: there are a variety of motivations for an executive to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if you know where to look (learn more here).
Now that that’s out of the way, it’s important to discuss the recent info for Goldcorp Inc. (USA) (NYSE:GG).
How have hedgies been trading Goldcorp Inc. (USA) (NYSE:GG)?
At Q2’s end, a total of 19 of the hedge funds we track were long in this stock, a change of -27% from the first quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
According to our 13F database, First Eagle Investment Management, managed by Matt McLennan, holds the most valuable position in Goldcorp Inc. (USA) (NYSE:GG). First Eagle Investment Management has a $783.7 million position in the stock, comprising 2.4% of its 13F portfolio. Coming in second is Carlson Capital, managed by Clint Carlson, which held a $68.8 million position; 0.8% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Daniel Bubis’s Tetrem Capital Management, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management.
Since Goldcorp Inc. (USA) (NYSE:GG) has witnessed bearish sentiment from the smart money’s best and brightest, logic holds that there lies a certain “tier” of hedgies that slashed their full holdings in Q1. At the top of the heap, Jonathon Jacobson’s Highfields Capital Management said goodbye to the largest stake of the 450+ funds we track, totaling close to $10.9 million in stock, and Jim Simons of Renaissance Technologies was right behind this move, as the fund dropped about $9.9 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 7 funds in Q1.
Insider trading activity in Goldcorp Inc. (USA) (NYSE:GG)
Insider buying made by high-level executives is best served when the company in question has experienced transactions within the past six months. Over the last 180-day time frame, Goldcorp Inc. (USA) (NYSE:GG) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Goldcorp Inc. (USA) (NYSE:GG). These stocks are AngloGold Ashanti Limited (ADR) (NYSE:AU), Kinross Gold Corporation (USA) (NYSE:KGC), Yamana Gold Inc. (USA) (NYSE:AUY), Newmont Mining Corp (NYSE:NEM), and Barrick Gold Corporation (USA) (NYSE:ABX). All of these stocks are in the gold industry and their market caps are similar to GG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| AngloGold Ashanti Limited (ADR) (NYSE:AU) | 19 | 0 | 0 |
| Kinross Gold Corporation (USA) (NYSE:KGC) | 22 | 0 | 0 |
| Yamana Gold Inc. (USA) (NYSE:AUY) | 24 | 0 | 0 |
| Newmont Mining Corp (NYSE:NEM) | 32 | 1 | 11 |
| Barrick Gold Corporation (USA) (NYSE:ABX) | 36 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s strategies, average investors must always pay attention to hedge fund and insider trading activity, and Goldcorp Inc. (USA) (NYSE:GG) shareholders fit into this picture quite nicely.
