Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK).
Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare NAK to other stocks including Smith Micro Software, Inc. (NASDAQ:SMSI), The First Marblehead Corporation (NYSE:FMD), and GenVec, Inc. (NASDAQ:GNVC) to get a better sense of its popularity.
To most stock holders, hedge funds are viewed as slow, old investment tools of the past. While there are over 8000 funds in operation today, Our experts look at the elite of this group, around 700 funds. Most estimates calculate that this group of people command the majority of the smart money’s total capital, and by monitoring their unrivaled picks, Insider Monkey has formulated a few investment strategies that have historically defeated Mr. Market. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Now, let’s go over the key action surrounding Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK).
What does the smart money think about Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK)?
At Q3’s end, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Kopernik Global Investors, managed by David Iben, holds the most valuable position in Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK). Kopernik Global Investors has an $2 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Paul J. Isaac of Arbiter Partners Capital Management, with an $0.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other members of the smart money that hold long positions consist of Israel Englander’s Millennium Management, and Ken Griffin’s Citadel Investment Group.