What Hedge Fund Sentiment Says about HudBay Minerals Inc (HBM)?

Seeing as HudBay Minerals Inc (NYSE:HBM) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of funds who were dropping their full holdings heading into the fourth quarter. Interestingly, John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, totaling about $1.4 million in call options.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as HudBay Minerals Inc (NYSE:HBM) but similarly valued. These stocks are Emergent Biosolutions Inc (NYSE:EBS), 8Point3 Energy Partners LP (NASDAQ:CAFD), Terreno Realty Corporation (NYSE:TRNO), and Benefitfocus Inc (NASDAQ:BNFT). This group of stocks’ market values match HBM’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $55 million. That figure was $88 million in HBM’s case. Emergent Biosolutions Inc (NYSE:EBS) is the most popular stock in this table. On the other hand Terreno Realty Corporation (NYSE:TRNO) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks HudBay Minerals Inc (NYSE:HBM) is even less popular than TRNO. 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.