Hedge Funds Are Crazy About Sandstorm Gold Ltd. (NYSEMKT:SAND)

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Waratah Capital Advisors, led by Brad Dunkley and Blair Levinsky, created the biggest position in Sandstorm Gold Ltd. (NYSE:SAND). Waratah Capital Advisors had $3.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.4 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management and Richard Driehaus’s Driehaus Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Sandstorm Gold Ltd. (NYSE:SAND). These stocks are Encore Wire Corporation (NASDAQ:WIRE), Constellium NV (NYSE:CSTM), Wave Life Sciences Ltd (NASDAQ:WVE), and Innophos Holdings, Inc. (NASDAQ:IPHS). This group of stocks’ market caps are closest to SAND’s market cap.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $171 million. That figure was $25 million in SAND’s case. Constellium NV (NYSE:CSTM) is the most popular stock in this table. On the other hand Wave Life Sciences Ltd (NASDAQ:WVE) is the least popular one with only 5 bullish hedge fund positions. Sandstorm Gold Ltd. (NYSE:SAND) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSTM might be a better candidate to consider taking a long position in.