Denison Mines Corp (USA) (NYSEAMEX:DNN) was in 7 hedge funds’ portfolio at the end of December. DNN investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 7 hedge funds in our database with DNN positions at the end of the previous quarter.
If you’d ask most shareholders, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear. While there are greater than 8000 funds trading at present, we choose to focus on the aristocrats of this group, around 450 funds. It is widely believed that this group has its hands on most of the hedge fund industry’s total capital, and by monitoring their top equity investments, we have unearthed a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).
Equally as important, optimistic insider trading activity is another way to break down the investments you’re interested in. There are lots of motivations for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this strategy if piggybackers understand what to do (learn more here).
Consequently, let’s take a glance at the key action encompassing Denison Mines Corp (USA) (NYSEAMEX:DNN).
Hedge fund activity in Denison Mines Corp (USA) (NYSEAMEX:DNN)
In preparation for this year, a total of 7 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, D. E. Shaw’s D E Shaw had the biggest position in Denison Mines Corp (USA) (NYSEAMEX:DNN), worth close to $0.9 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Michael Hintze of CQS Cayman LP, with a $0.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Andrew Weiss’s Weiss Asset Management, Jim Simons’s Renaissance Technologies and Eric Sprott’s Sprott Asset Management.
Seeing as Denison Mines Corp (USA) (NYSEAMEX:DNN) has witnessed declining sentiment from the smart money, it’s safe to say that there is a sect of funds who sold off their entire stakes heading into 2013. Interestingly, John Thiessen’s Vertex One Asset Management dumped the biggest stake of the 450+ funds we watch, worth about $0.4 million in stock. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Denison Mines Corp (USA) (NYSEAMEX:DNN)?
Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, Denison Mines Corp (USA) (NYSEAMEX:DNN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Denison Mines Corp (USA) (NYSEAMEX:DNN). These stocks are Thompson Creek Metals Company Inc (USA) (NYSE:TC), Materion Corp (NYSE:MTRN), Platinum Group Metals Limited (USA) (NYSEAMEX:PLG), MFC Industrial Ltd (NYSE:MIL), and Taseko Mines Limited (USA) (NYSEAMEX:TGB). All of these stocks are in the industrial metals & minerals industry and their market caps resemble DNN’s market cap.