Do Hedge Funds Love Cameco Corporation (USA) (CCJ)?

Due to the fact that Cameco Corporation (USA) (NYSE:CCJ) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of funds who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that George Soros’ Soros Fund Management dropped the biggest stake of the “upper crust” of funds tracked by Insider Monkey, worth about $52.8 million in stock. Roberto Mignone’s fund, Bridger Management, also dumped its stock, about $11.6 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 5 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Cameco Corporation (USA) (NYSE:CCJ). We will take a look at Michaels Companies Inc (NASDAQ:MIK), Zillow Inc (NASDAQ:Z), Quanta Services Inc (NYSE:PWR), and Acadia Healthcare Company Inc (NASDAQ:ACHC). This group of stocks’ market caps are similar to CCJ’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $345 million. That figure was $301 million in CCJ’s case. Quanta Services Inc (NYSE:PWR) is the most popular stock in this table, while Michaels Companies Inc (NASDAQ:MIK) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks, Cameco Corporation (USA) (NYSE:CCJ) is even less popular than MIK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.