Tahoe Resources Inc (TAHO): Hedge Fund Sentiment Unchanged

Judging by the fact that Tahoe Resources Inc (NYSE:TAHO) has faced a declination in interest from the aggregate hedge fund industry, logic holds that there was a specific group of hedgies that decided to sell off their full holdings in the third quarter. At the top of the heap, GLG Partners said goodbye to the largest stake of the 700 funds tracked by Insider Monkey, valued at an estimated $1.5 million in stock, and Michael Platt and William Reeves’s BlueCrest Capital Mgmt. was right behind this move, as the fund cut about $0.6 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Tahoe Resources Inc (NYSE:TAHO) but similarly valued. We will take a look at The St. Joe Company (NYSE:JOE), Ferrellgas Partners, L.P. (NYSE:FGP), Mellanox Technologies, Ltd. (NASDAQ:MLNX), and Eastgroup Properties Inc (NYSE:EGP). This group of stocks’ market valuations are closest to TAHO’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $249 million. That figure was just $55 million in TAHO’s case. Mellanox Technologies, Ltd. (NASDAQ:MLNX) is the most popular stock in this table, while Ferrellgas Partners, L.P. (NYSE:FGP) is the least popular one with only 4 bullish hedge fund positions. Tahoe Resources Inc (NYSE:TAHO) 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 MLNX might be a better candidate to consider a long position.