Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Agnico Eagle Mines Ltd (USA) (NYSE:AEM).
Is Agnico Eagle Mines Ltd (USA) (NYSE:AEM) a buy here? The best stock pickers are taking a bearish view. The number of long hedge fund positions shrunk by 4 lately. 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 Principal Financial Group Inc (NYSE:PFG), Advance Auto Parts, Inc. (NYSE:AAP), and Twitter Inc (NYSE:TWTR) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Now, let’s review the recent action regarding Agnico Eagle Mines Ltd (USA) (NYSE:AEM).
Hedge fund activity in Agnico Eagle Mines Ltd (USA) (NYSE:AEM)
Heading into the fourth quarter of 2016, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a plunge of 14% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the most valuable position in Agnico Eagle Mines Ltd (USA) (NYSE:AEM). According to regulatory filings, the fund has a $169.1 million position in the stock, comprising 0.6% of its 13F portfolio. Sitting at the No. 2 spot is Paulson & Co, managed by billionaire John Paulson, which holds a $68.3 million position; 0.7% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include Cliff Asness’s AQR Capital Management, Eric Sprott’s Sprott Asset Management and Stanley Druckenmiller’s Duquesne Capital.