Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) has seen a decrease in hedge fund sentiment lately.
To the average investor, there are plenty of gauges market participants can use to monitor publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outpace the market by a significant amount (see just how much).
Just as integral, positive insider trading sentiment is another way to parse down the investments you’re interested in. Obviously, there are many stimuli for an insider to sell shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the market-beating potential of this strategy if shareholders understand what to do (learn more here).
Consequently, let’s take a look at the latest action regarding Randgold Resources Ltd. (ADR) (NASDAQ:GOLD).
How have hedgies been trading Randgold Resources Ltd. (ADR) (NASDAQ:GOLD)?
In preparation for this quarter, a total of 12 of the hedge funds we track were long in this stock, a change of -14% from the first quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the most valuable position in Randgold Resources Ltd. (ADR) (NASDAQ:GOLD). First Eagle Investment Management has a $108.7 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Paulson & Co, managed by John Paulson, which held a $79.6 million position; 0.4% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates and David Costen Haley’s HBK Investments.
Because Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) has witnessed falling interest from hedge fund managers, it’s safe to say that there is a sect of fund managers who were dropping their entire stakes heading into Q2. Interestingly, Israel Englander’s Millennium Management sold off the biggest investment of the 450+ funds we watch, comprising about $12.9 million in stock., and Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital was right behind this move, as the fund sold off about $9.3 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 2 funds heading into Q2.
Insider trading activity in Randgold Resources Ltd. (ADR) (NASDAQ:GOLD)
Insider buying is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the last six-month time frame, Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Randgold Resources Ltd. (ADR) (NASDAQ:GOLD). These stocks are Eldorado Gold Corp (USA) (NYSE:EGO), Kinross Gold Corporation (USA) (NYSE:KGC), AngloGold Ashanti Limited (ADR) (NYSE:AU), Agnico-Eagle Mines Limited (USA) (NYSE:AEM), and Compania de Minas Buenaventura SA (ADR) (NYSE:BVN). This group of stocks are the members of the gold industry and their market caps match GOLD’s market cap.