You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Hedge fund interest in NovaGold Resources Inc. (USA) (NYSEMKT:NG) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare NG to other stocks including Insmed Incorporated (NASDAQ:INSM), Eagle Pharmaceuticals Inc (NASDAQ:EGRX), and Federal-Mogul Holdings Corp (NASDAQ:FDML) to get a better sense of its popularity.
Now, let’s take a gander at the recent action encompassing NovaGold Resources Inc. (USA) (NYSEMKT:NG).
How have hedgies been trading NovaGold Resources Inc. (USA) (NYSEMKT:NG)?
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, John Paulson’s Paulson & Co has the largest position in NovaGold Resources Inc. (USA) (NYSEMKT:NG), worth close to $128.6 million, comprising 0.7% of its total 13F portfolio. On Paulson & Co’s heels is Baupost Group, led by Seth Klarman, holding a $78.3 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions contain Robert Pitts’ Steadfast Capital Management, David Iben’s Kopernik Global Investors and Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management.