Is Newmont Mining Corp (NYSE:NEM) Going to Burn These Hedge Funds?

Newmont Mining Corp (NYSE:NEM) was in 42 hedge funds’ portfolio at the end of the fourth quarter of 2012. NEM shareholders have witnessed a decrease in support from the world’s most elite money managers of late. There were 46 hedge funds in our database with NEM holdings at the end of the previous quarter.

6 Ways Get Your Dividends in Gold and Silver Bullion

According to most market participants, hedge funds are perceived as slow, old investment vehicles of years past. While there are over 8000 funds in operation at present, we look at the top tier of this club, around 450 funds. Most estimates calculate that this group oversees the lion’s share of the hedge fund industry’s total asset base, and by keeping an eye on their top stock picks, we have figured out a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Just as beneficial, positive insider trading sentiment is a second way to parse down the stock market universe. There are many incentives for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this method if shareholders understand where to look (learn more here).

With all of this in mind, let’s take a gander at the latest action surrounding Newmont Mining Corp (NYSE:NEM).

How are hedge funds trading Newmont Mining Corp (NYSE:NEM)?

At year’s end, a total of 42 of the hedge funds we track were long in this stock, a change of -9% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes significantly.

According to our comprehensive database, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the largest position in Newmont Mining Corp (NYSE:NEM). First Eagle Investment Management has a $293 million billion position in the stock, comprising 1% of its 13F portfolio. Coming in second is Mario Gabelli of GAMCO Investors, with a $81 million position; 2.8% of its 13F portfolio is allocated to the company.

Seeing as Newmont Mining Corp (NYSE:NEM) has faced a declination in interest from hedge fund managers, logic holds that there lies a certain “tier” of money managers that elected to cut their entire stakes in Q4. It’s worth mentioning that Sean Cullinan’s Point State Capital dumped the biggest investment of the 450+ funds we key on, worth an estimated $52 million in stock.. Robert Emil Zoellner’s fund, Alpine Associates, also sold off its stock, about $42 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 4 funds in Q4.

How have insiders been trading Newmont Mining Corp (NYSE:NEM)?

Bullish insider trading is particularly usable when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, Newmont Mining Corp (NYSE:NEM) has experienced zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned research, retail investors should always watch hedge fund and insider trading sentiment, and Newmont Mining Corp (NYSE:NEM) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!