Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the third quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4 years and analyze what the smart money thinks of Cameco Corporation (NYSE:CCJ) based on that data.
Cameco Corporation (NYSE:CCJ) was in 25 hedge funds' portfolios at the end of September. CCJ has seen an increase in enthusiasm from smart money recently. There were 24 hedge funds in our database with CCJ holdings at the end of the previous quarter. Our calculations also showed that CCJ isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
Today there are plenty of indicators shareholders put to use to appraise publicly traded companies. Some of the most useful indicators are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the broader indices by a superb margin (see the details here).
[caption id="attachment_340081" align="aligncenter" width="450"] Phill Gross of Adage Capital Management[/caption]
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds' buy/sell signals. We're going to take a look at the key hedge fund action encompassing Cameco Corporation (NYSE:CCJ).
Hedge fund activity in Cameco Corporation (NYSE:CCJ)
At Q3's end, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CCJ over the last 17 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Phill Gross and Robert Atchinson's Adage Capital Management has the largest position in Cameco Corporation (NYSE:CCJ), worth close to $119.1 million, accounting for 0.3% of its total 13F portfolio. The second most bullish fund manager is Kopernik Global Investors, managed by David Iben, which holds a $109.3 million position; the fund has 20.8% of its 13F portfolio invested in the stock. Some other professional money managers that hold long positions encompass David Rosen's Rubric Capital Management, Carson Yost's Yost Capital Management and Amit Wadhwaney's Moerus Capital Management. In terms of the portfolio weights assigned to each position Yost Capital Management allocated the biggest weight to Cameco Corporation (NYSE:CCJ), around 23.78% of its portfolio. Kopernik Global Investors is also relatively very bullish on the stock, setting aside 20.78 percent of its 13F equity portfolio to CCJ.
As aggregate interest increased, specific money managers have been driving this bullishness. Point State Capital, managed by Zach Schreiber, assembled the biggest position in Cameco Corporation (NYSE:CCJ). Point State Capital had $4.3 million invested in the company at the end of the quarter. Noam Gottesman's GLG Partners also made a $2.5 million investment in the stock during the quarter. The only other fund with a new position in the stock is Michael Gelband's ExodusPoint Capital.
Let's check out hedge fund activity in other stocks similar to Cameco Corporation (NYSE:CCJ). These stocks are SLM Corporation (NASDAQ:SLM), Antero Midstream Corporation (NYSE:AM), F.N.B. Corporation (NYSE:FNB), and Weingarten Realty Investors (NYSE:WRI). This group of stocks' market values are closest to CCJ's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SLM,25,501007,-7 AM,16,138560,1 FNB,18,107990,-1 WRI,19,170653,-1 Average,19.5,229553,-2 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $230 million. That figure was $385 million in CCJ's case. SLM Corporation (NASDAQ:SLM) is the most popular stock in this table. On the other hand Antero Midstream Corporation (NYSE:AM) is the least popular one with only 16 bullish hedge fund positions. Cameco Corporation (NYSE:CCJ) 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately CCJ wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CCJ were disappointed as the stock returned -2% during the fourth quarter (through the end of November) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.