Smart Money Ownership of Randgold Resources Ltd. (ADR) (GOLD) Continues to Lag

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. It’s worth mentioning that First Eagle Investment Management sold off the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling about $151.1 million in call options. Jacob Gottlieb’s fund, Visium Asset Management, also dropped its call options, about $32.7 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) but similarly valued. We will take a look at HEICO Corporation (NYSE:HEI), Guidewire Software Inc (NYSE:GWRE), Taubman Centers, Inc. (NYSE:TCO), and Toll Brothers Inc (NYSE:TOL). This group of stocks’ market caps are similar to GOLD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HEI 20 380440 -3
GWRE 22 118946 5
TCO 19 436312 1
TOL 29 329585 1

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $316 million. That figure was $180 million in GOLD’s case. Toll Brothers Inc (NYSE:TOL) is the most popular stock in this table. On the other hand Taubman Centers, Inc. (NYSE:TCO) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) is even less popular than TCO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None

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