Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of June. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Eldorado Gold Corp (NYSE:EGO), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Eldorado Gold Corp (NYSE:EGO) was in 13 hedge funds' portfolios at the end of the third quarter of 2019. EGO investors should be aware of an increase in support from the world's most elite money managers recently. There were 10 hedge funds in our database with EGO positions at the end of the previous quarter. Our calculations also showed that EGO 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.
In the eyes of most stock holders, hedge funds are viewed as worthless, outdated financial tools of yesteryear. While there are more than 8000 funds trading at the moment, We look at the leaders of this group, approximately 750 funds. These hedge fund managers control the majority of the hedge fund industry's total asset base, and by following their top stock picks, Insider Monkey has unsheathed numerous investment strategies that have historically outrun the market. Insider Monkey's flagship short hedge fund strategy outpaced the S&P 500 short ETFs by around 20 percentage points annually since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .
[caption id="attachment_26073" align="alignnone" width="600"] Jim Simons of Renaissance Technologies[/caption]
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world's largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, "I'm investing more today than I did back in early 2009." So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds' buy/sell signals. We're going to go over the latest hedge fund action encompassing Eldorado Gold Corp (NYSE:EGO).
How have hedgies been trading Eldorado Gold Corp (NYSE:EGO)?
At Q3's end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 30% from the second quarter of 2019. On the other hand, there were a total of 9 hedge funds with a bullish position in EGO 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.
More specifically, Renaissance Technologies was the largest shareholder of Eldorado Gold Corp (NYSE:EGO), with a stake worth $46.5 million reported as of the end of September. Trailing Renaissance Technologies was Lansdowne Partners, which amassed a stake valued at $31.7 million. Prince Street Capital Management, Two Sigma Advisors, and Citadel Investment Group 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 Prince Street Capital Management allocated the biggest weight to Eldorado Gold Corp (NYSE:EGO), around 10.33% of its 13F portfolio. Sun Valley Gold is also relatively very bullish on the stock, setting aside 1.78 percent of its 13F equity portfolio to EGO.
Now, specific money managers have been driving this bullishness. Prince Street Capital Management, managed by David Halpert, initiated the most outsized position in Eldorado Gold Corp (NYSE:EGO). Prince Street Capital Management had $16.1 million invested in the company at the end of the quarter. Robert Polak's Anchor Bolt Capital also initiated a $4.4 million position during the quarter. The other funds with new positions in the stock are Peter Algert and Kevin Coldiron's Algert Coldiron Investors, Michael Gelband's ExodusPoint Capital, and Minhua Zhang's Weld Capital Management.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Eldorado Gold Corp (NYSE:EGO) but similarly valued. We will take a look at Gannett Co., Inc. (NYSE:GCI), Medifast, Inc. (NYSE:MED), Futu Holdings Limited (NASDAQ:FHL), and Tompkins Financial Corporation (NYSEAMEX:TMP). This group of stocks' market values resemble EGO's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GCI,17,168832,3 MED,22,302026,3 FHL,1,538,-2 TMP,6,20124,1 Average,11.5,122880,1.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $123 million. That figure was $137 million in EGO's case. Medifast, Inc. (NYSE:MED) is the most popular stock in this table. On the other hand Futu Holdings Limited (NASDAQ:FHL) is the least popular one with only 1 bullish hedge fund positions. Eldorado Gold Corp (NYSE:EGO) 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 EGO wasn't nearly as popular as these 20 stocks and hedge funds that were betting on EGO were disappointed as the stock returned 0.9% 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.