Many investors, including Carl Icahn or Stan Druckenmiller, have been saying for a while now that the current market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the third quarter, many investors lost money due to unpredictable events such as the concerns over Valeant’s drug pricing policy that led to an overall drop among pharma stocks. Nevertheless, many of the stocks that tanked in the third quarter still sport strong fundamentals and their decline was more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Silver Wheaton Corp. (USA) (NYSE:SLW) changed recently.
Silver Wheaton Corp. (USA) (NYSE:SLW) investors should pay attention to a decrease in support from the world’s most elite money managers recently. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS), StanCorp Financial Group, Inc. (NYSE:SFG), and Seattle Genetics, Inc. (NASDAQ:SGEN) to gather more data points.
Now, we’re going to go over the new action surrounding Silver Wheaton Corp. (USA) (NYSE:SLW).
How are hedge funds trading Silver Wheaton Corp. (USA) (NYSE:SLW)?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -5% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Murray Stahl’s Horizon Asset Management has the largest position in Silver Wheaton Corp. (USA) (NYSE:SLW), worth close to $57.1 million, accounting for 1% of its total 13F portfolio. Sitting at the No. 2 spot is 3G Capital, managed by Jorge Paulo Lemann, which holds a $36 million position; 2.7% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions comprise Cliff Asness’ AQR Capital Management, Jacob Gottlieb’s Visium Asset Management and Jim Simons’ Renaissance Technologies.