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Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Cameco Corporation (NYSE:CCJ).
Is Cameco Corporation (NYSE:CCJ) a healthy stock for your portfolio? The best stock pickers were becoming hopeful. The number of bullish hedge fund bets advanced by 10 lately. Cameco Corporation (NYSE:CCJ) was in 35 hedge funds' portfolios at the end of September. The all time high for this statistic was previously 30. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CCJ isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 25 hedge funds in our database with CCJ positions at the end of the second quarter.
Richard Driehaus of Driehaus Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let's review the latest hedge fund action regarding Cameco Corporation (NYSE:CCJ).
Do Hedge Funds Think CCJ Is A Good Stock To Buy Now?
At third quarter's end, a total of 35 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 40% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CCJ over the last 25 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Cameco Corporation (NYSE:CCJ) was held by Kopernik Global Investors, which reported holding $194.9 million worth of stock at the end of September. It was followed by MFN Partners with a $154.6 million position. Other investors bullish on the company included Citadel Investment Group, Adage Capital Management, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Kopernik Global Investors allocated the biggest weight to Cameco Corporation (NYSE:CCJ), around 21.87% of its 13F portfolio. Moerus Capital Management is also relatively very bullish on the stock, designating 11.65 percent of its 13F equity portfolio to CCJ.
As aggregate interest increased, key hedge funds were leading the bulls' herd. Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the biggest position in Cameco Corporation (NYSE:CCJ). Two Sigma Advisors had $34.3 million invested in the company at the end of the quarter. Richard Driehaus's Driehaus Capital also made a $23.5 million investment in the stock during the quarter. The following funds were also among the new CCJ investors: Zach Schreiber's Point State Capital, Zach Schreiber's Point State Capital, and Carson Yost's Yost Capital Management.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Cameco Corporation (NYSE:CCJ) but similarly valued. We will take a look at Vornado Realty Trust (NYSE:VNO), Flex Ltd. (NASDAQ:FLEX), Ovintiv Inc. (NYSE:OVV), The Gap Inc. (NYSE:GPS), CRISPR Therapeutics AG (NASDAQ:CRSP), Jabil Inc. (NYSE:JBL), and Vertiv Holdings Co (NYSE:VRT). This group of stocks' market valuations match CCJ's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position VNO,25,194723,-4 FLEX,35,1149382,-8 OVV,44,684078,4 GPS,28,370571,-15 CRSP,43,1215665,9 JBL,27,517374,1 VRT,36,811401,0 Average,34,706171,-1.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $706 million. That figure was $756 million in CCJ's case. Ovintiv Inc. (NYSE:OVV) is the most popular stock in this table. On the other hand Vornado Realty Trust (NYSE:VNO) is the least popular one with only 25 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. Our overall hedge fund sentiment score for CCJ is 66.3. 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. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on CCJ as the stock returned 7% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.