Hedge Funds Are Crazy About DRDGOLD Ltd. (ADR) (DRD)

As industrywide interest jumped, key hedge funds have jumped into DRDGOLD Ltd. (ADR) (NYSE:DRD) headfirst. Millennium Management assembled the most valuable position in DRDGOLD Ltd. (ADR) (NYSE:DRD). Millennium Management had $0.9 million invested in the company at the end of the quarter. BlueCrest Capital Mgmt. also made a $0.1 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as DRDGOLD Ltd. (ADR) (NYSE:DRD) but similarly valued. These stocks are Lee Enterprises, Incorporated (NYSE:LEE), Pfenex Inc (NYSEMKT:PFNX), EndoChoice Holdings Inc (NYSE:GI), and Comtech Telecomm. Corp. (NASDAQ:CMTL). This group of stocks’ market valuations are closest to DRD’s market valuation.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $13 million in DRD’s case. Comtech Telecomm. Corp. (NASDAQ:CMTL) is the most popular stock in this table. On the other hand Pfenex Inc (NYSEMKT:PFNX) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks DRDGOLD Ltd. (ADR) (NYSE:DRD) is even less popular than PFNX. 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.

Suggested Articles:
Countries With The Highest Rates of Serial Killers
Most Racist European Countries Towards Muslims
Most Open Minded Countries In The World

Disclosure: None