Why Are These Stocks Surging Today?

With oil sliding again, U.S. stocks found it hard to enter the green territory today. Energy stocks have dragged the market lower in the first hours of trading, but could not keep them in the red for long, as the indices have recovered and are trying for gains. In this article we’ll talk about Harmony Gold Mining Co. (ADR) (NYSE:HMY), Spirit Airlines Incorporated (NASDAQ:SAVE), Nielsen N.V. Ordinary Shares (NYSE:NLSN), General Steel Holdings Inc (NYSE:GSI) and Akers Biosciences Inc (NASDAQ:AKER), and see why these stocks shot up after the opening bell.

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First up is Harmony Gold Mining Co. (ADR) (NYSE:HMY), whose shares are currently up by 5.6% as gold prices increased as well. The stock has been on a roll since the U.S. Federal Reserve raised the interest rates about a month ago. The weakness stemming from China and increased tensions in the Middle East are pushing gold prices higher, with mining stocks following suit.

Harmony Gold Mining Co. (ADR) (NYSE:HMY) is not among the hedge funds’ favorites, with only eight funds among those we track reporting a long position in the stock at the end of 2015 third quarter, down from 10 at the end of June. Israel Englander is very bullish on this particular stock, having made a huge play during the quarter. In its latest 13F filing, Millennium Management has reported a massive increase in its holding to 3.95 million shares, the second largest position among those 8 funds.

Shares of Spirit Airlines Incorporated (NASDAQ:SAVE) shot up after the introduction of its new Chief Executive Officer emerged. Robert L. Fornaro, the former CEO of AirTran Holdings and a member of Spirit Airlines’ board of directors since 2014, is taking over from Ben Baldanza, who managed the company since 2006. With the stock having plunged by 46% last year, today’s rally is a sign that investors take this appointment as a fresh start for the ultra low-cost carrier.

During the third quarter of 2015, Spirit Airlines Incorporated (NASDAQ:SAVE) gained a vote of confidence from hedge fund managers, with the number of funds invested reaching 39, up from 31 a quarter earlier. Ken Griffin is betting on a turnaround, having boosted his stake by 131% over the quarter. At the end of September, Citadel Investment Group held approximately 2.57 million shares of Spirit Airlines.

Nielsen N.V. Ordinary Shares (NYSE:NLSN) is also trending higher today, after the company announced a deal with Cumulus Media Inc (NASDAQ:CMLS) for the use of Nielsen’s Voter Rating system. Cumulus Media will use the system to determine the political preferences of its listeners in a bid to capitalize on the ongoing election campaign. Nielsen’s technology can also help political agencies increase the efficiency of their ads by targeting the required segment of voters. Shares of Nielsen jumped by nearly 2% and are continuing to go higher.

The poor performance of Nielsen N.V. Ordinary Shares (NYSE:NLSN) stock during 2015 sent the hedge fund running away, as the number of hedge fund positions in the company dropping to 19 by the end of September, from 28 three months before. Adage Capital Management’s Phill Gross and Robert Atchinson, on the other hand, stood their ground and actually increased their investment in the company. In its latest 13F filing, the fund reported a 22% boost in its stake to 1.06 million shares.

General Steel Holdings Inc (NYSE:GSI) has surged by as much as 79%, after it announced the sale of its steel manufacturing business. The company’s struggles in the depressed Chinese steel industry have prompted the management to divest. General Steel has reached an agreement with an affiliate of Victory Energy Resource for the sale of its subsidiary General Steel (China) and its stake in Shaanxi Longmen Iron and Steel Co., Ltd. in exchange for $1 million. General Steel CEO, Yunshan Li, said this move was necessary for the survival of the company and for ensuring it has enough liquidity to focus on its cleantech business.

Only two of the funds we follow were holding a stake in General Steel Holdings Inc (NYSE:GSI) and their combined holdings amounted to less than 1% of the company’s common stock. Jim Simons‘ Renaissance Technologies has reported ownership of 570,400 shares of General Steel Holdings in its latest quarterly report, down by 1% over the quarter.

The biggest gainer from this group is Akers Biosciences Inc (NASDAQ:AKER), currently up by 51%, although it rose by as much as 90% during the first hours of trading today. The stock mysteriously shot up this morning, with no significant news available. Whether it’s a “pump and dump” move or there is a good reason for the surge, one thing is for sure: there was significant insider buying on New Year’s Eve, with several officers and directors acquiring a large amount of shares. The stock has been a poor performed in 2015, losing approximately 70% of its value over the year.

None of the hedge funds we follow has reported a long position in Akers Biosciences Inc (NASDAQ:AKER) at the end of the 2015 third quarter.

Disclosure: none