Should Coeur d'Alene Mines Corporation (NYSE:CDE) track the following data?
If you were to ask many investors, hedge funds are assumed to be bloated, old investment vehicles of a period lost to current times. Although there are In excess of 8,000 hedge funds trading today, Insider Monkey aim at the crème de la crème of this club, close to 525 funds. It is widely held that this group oversees most of the hedge fund industry's total assets, and by keeping an eye on their highest quality investments, we've determined a number of 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 annually 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as crucial, optimistic insider trading sentiment is another way to look at the financial markets. As the old adage goes: there are a number of stimuli for an executive to drop shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this method if piggybackers know where to look (learn more here).
Keeping this in mind, we're going to examine the newest info surrounding Coeur d'Alene Mines Corporation (NYSE:CDE).
At the end of the second quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 25% from the previous quarter. With hedge funds' sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully.
When using filings from the hedgies we track, Eric Sprott's Sprott Asset Management had the biggest position in Coeur d'Alene Mines Corporation (NYSE:CDE), worth close to $15.9 million, comprising 2.2% of its total 13F portfolio. The second largest stake is held by Sun Valley Gold, managed by Peter Franklin Palmedo, which held a $15.7 million position; 2.1% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include David Dreman's Dreman Value Management, D. E. Shaw's D E Shaw and John Overdeck and David Siegel's Two Sigma Advisors.
As aggregate interest spiked, particular hedge funds were breaking ground themselves. Sprott Asset Management, managed by Eric Sprott, initiated the biggest position in Coeur d'Alene Mines Corporation (NYSE:CDE). Sprott Asset Management had 15.9 million invested in the company at the end of the quarter. Peter Franklin Palmedo's Sun Valley Gold also made a $15.7 million investment in the stock during the quarter. The other funds with new positions in the stock are David Dreman's Dreman Value Management, D. E. Shaw's D E Shaw, and John Overdeck and David Siegel's Two Sigma Advisors.
Insider buying made by high-level executives is most useful when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, Coeur d'Alene Mines Corporation (NYSE:CDE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Coeur d'Alene Mines Corporation (NYSE:CDE). These stocks are Silvercorp Metals Inc. (USA) (NYSE:SVM), Silver Standard Resources Inc. (USA) (NASDAQ:SSRI), Hecla Mining Company (NYSE:HL), Pan American Silver Corp. (USA) (NASDAQ:PAAS), and First Majestic Silver Corp (NYSE:AG). This group of stocks are in the silver industry and their market caps match CDE's market cap.