Primero Mining Corp (NYSE:PPP) was in 7 hedge funds’ portfolio at the end of the fourth quarter of 2012. PPP investors should pay attention to an increase in enthusiasm from smart money recently. There were 6 hedge funds in our database with PPP holdings at the end of the previous quarter.
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Just as important, positive insider trading sentiment is another way to break down the world of equities. There are lots of incentives for an insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).
With these “truths” under our belt, it’s important to take a peek at the key action surrounding Primero Mining Corp (NYSE:PPP).
What have hedge funds been doing with Primero Mining Corp (NYSE:PPP)?
In preparation for this year, a total of 7 of the hedge funds we track held long positions in this stock, a change of 17% from the previous quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.
When looking at the hedgies we track, Eric Sprott’s Sprott Asset Management had the most valuable position in Primero Mining Corp (NYSE:PPP), worth close to $10.2 million, comprising 1.2% of its total 13F portfolio. The second largest stake is held by Peter Franklin Palmedo of Sun Valley Gold, with a $6.9 million position; 0.4% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Joel Greenblatt’s Gotham Asset Management.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Sprott Asset Management, managed by Eric Sprott, created the largest position in Primero Mining Corp (NYSE:PPP). Sprott Asset Management had 10.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.1 million position during the quarter.
How have insiders been trading Primero Mining Corp (NYSE:PPP)?
Insider buying is best served when the company in focus has seen transactions within the past 180 days. Over the last half-year time frame, Primero Mining Corp (NYSE:PPP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Primero Mining Corp (NYSE:PPP). These stocks are DRDGOLD Ltd. (ADR) (NYSE:DRD), Banro Corporation (USA) (NYSEAMEX:BAA), Golden Star Resources Ltd. (USA) (NYSEAMEX:GSS), Timmins Gold Corp (NYSEAMEX:TGD), and Tanzanian Royalty Exploration Corp. (US) (NYSEAMEX:TRX). This group of stocks belong to the gold industry and their market caps resemble PPP’s market cap.