Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.
Is Comstock Mining, Inc. (NYSEMKT:LODE) a buy right now? The smart money is getting less bullish. The number of bullish hedge fund positions dropped by 1 lately. It may come as a bit of a surprise, as the shares of Comstock Mining, Inc. (NYSEMKT:LODE) gained 4.27% value during the quarter. In order to understand the hedge fund sentiment, we will find out more about the hedge funds that held stakes in Comstock Mining, Inc. (NYSEMKT:LODE), at the end of September.
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 Cyren Ltd (NASDAQ:CYRN), Barington/Hilco Acquisition Corp. Common Stock (NASDAQ:BHAC), and Vringo, Inc. (NASDAQ:VRNG) to gather more data points.
To the average investor, there are a multitude of gauges stock market investors use to evaluate their holdings. Some of the most useful gauges are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the best money managers can outpace the S&P 500 by a solid margin (see the details here).
Now, we’re going to take a glance at the latest action regarding Comstock Mining, Inc. (NYSEMKT:LODE).
What have hedge funds been doing with Comstock Mining, Inc. (NYSEMKT:LODE)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 20% from the second quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Peter Franklin Palmedo’s Sun Valley Gold has the most valuable position in Comstock Mining, Inc. (NYSEMKT:LODE), worth close to $2.7 million, corresponding to 0.2% of its total 13F portfolio. The second largest stake is held by Royce & Associates, led by Chuck Royce, holding a $0.4 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Some other peers that are bullish encompass Renaissance Technologies, and Ken Griffin’s Citadel Investment Group.