Is Gold Fields Limited (ADR) (NYSE:GFI) a buy?
At the moment, there are tons of methods shareholders can use to watch stocks. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can beat their index-focused peers by a healthy amount (see just how much).
Equally as key, optimistic insider trading activity is another way to analyze the investments you’re interested in. Just as you’d expect, there are lots of reasons for an upper level exec to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand where to look (learn more here).
Thus, it’s important to analyze the recent info about Gold Fields Limited (ADR) (NYSE:GFI).
What have hedge funds been doing with Gold Fields Limited (ADR) (NYSE:GFI)?
In preparation for the third quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of -10% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes significantly.
According to our 13F database, Matt McLennan’s First Eagle Investment Management had the largest position in Gold Fields Limited (ADR) (NYSE:GFI), worth close to $291.8 million, accounting for 0.9% of its total 13F portfolio. The second largest stake is held by Paulson & Co, managed by John Paulson, which held a $34.3 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates and J. Alan Reid, Jr.’s Forward Management.
Since Gold Fields Limited (ADR) (NYSE:GFI) has faced dropping sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of money managers that decided to sell off their entire stakes in Q1. It’s worth mentioning that Jonathon Jacobson’s Highfields Capital Management cut the largest position of the 450+ funds we monitor, comprising about $11.6 million in stock. Jeffrey Vinik’s fund, Vinik Asset Management, also dropped its stock, about $1.7 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 2 funds in Q1.
How have insiders been trading Gold Fields Limited (ADR) (NYSE:GFI)?
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, Gold Fields Limited (ADR) (NYSE:GFI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Gold Fields Limited (ADR) (NYSE:GFI). These stocks are Royal Gold, Inc USA) (NASDAQ:RGLD), Compania de Minas Buenaventura SA (ADR) (NYSE:BVN), Agnico-Eagle Mines Limited (USA) (NYSE:AEM), Eldorado Gold Corp (USA) (NYSE:EGO), and Franco-Nevada Corporation (NYSE:FNV). This group of stocks belong to the gold industry and their market caps are similar to GFI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Royal Gold, Inc USA) (NASDAQ:RGLD) | 21 | 0 | 0 |
| Compania de Minas Buenaventura SA (ADR) (NYSE:BVN) | 9 | 0 | 0 |
| Agnico-Eagle Mines Limited (USA) (NYSE:AEM) | 18 | 0 | 0 |
| Eldorado Gold Corp (USA) (NYSE:EGO) | 21 | 0 | 0 |
| Franco-Nevada Corporation (NYSE:FNV) | 14 | 0 | 0 |
Using the returns demonstrated by our tactics, average investors must always track hedge fund and insider trading activity, and Gold Fields Limited (ADR) (NYSE:GFI) is an important part of this process.
