Is Asanko Gold Inc (AKG) Going to Burn These Hedge Funds?

Seeing as Asanko Gold Inc (NYSEMKT:AKG) has witnessed declining sentiment from the smart money, it’s safe to say that there were a few hedgies that slashed their full holdings last quarter. Intriguingly, Ken Griffin’s Citadel Investment Group dumped the largest investment of the 700 funds monitored by Insider Monkey, totaling close to $0.1 million in call options, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dumped about $0.1 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Asanko Gold Inc (NYSEMKT:AKG) but similarly valued. We will take a look at Barnes & Noble, Inc. (NYSE:BKS), ARMOUR Residential REIT, Inc. (NYSE:ARR), Dominion Diamond Corp (NYSE:DDC), and Babcock & Wilcox Enterprises Inc (NYSE:BW). This group of stocks’ market values resemble AKG’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $112 million. That figure was $88 million in AKG’s case. Babcock & Wilcox Enterprises Inc (NYSE:BW) is the most popular stock in this table. On the other hand ARMOUR Residential REIT, Inc. (NYSE:ARR) is the least popular one with only 6 bullish hedge fund positions. Asanko Gold Inc (NYSEMKT:AKG) 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 BW might be a better candidate to consider taking a long position in.

Disclosure: None