Is Barrick Gold Corporation (USA) (NYSE:ABX) worth your attention right now? Money managers are turning less bullish. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience
In the 21st century investor’s toolkit, there are plenty of indicators investors can use to watch stocks. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outpace their index-focused peers by a superb amount (see just how much).
Equally as key, bullish insider trading sentiment is another way to parse down the stock market universe. Obviously, there are a number of reasons for a bullish insider to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this tactic if investors know where to look (learn more here).
Consequently, let’s take a gander at the key action regarding Barrick Gold Corporation (USA) (NYSE:ABX).
What have hedge funds been doing with Barrick Gold Corporation (USA) (NYSE:ABX)?
At Q1’s end, a total of 42 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the biggest position in Barrick Gold Corporation (USA) (NYSE:ABX). First Eagle Investment Management has a $107.7 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is D E Shaw, managed by D. E. Shaw, which held a $100.4 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Jeffrey Vinik’s Vinik Asset Management, Kerr Neilson’s Platinum Asset Management and Michael A. Price and Amos Meron’s Empyrean Capital Partners.
Judging by the fact that Barrick Gold Corporation (USA) (NYSE:ABX) has faced a declination in interest from the smart money, we can see that there exists a select few funds that elected to cut their positions entirely heading into Q2. It’s worth mentioning that John Paulson’s Paulson & Co sold off the biggest investment of the “upper crust” of funds we track, valued at an estimated $32 million in stock.. Joshua Friedman and Mitchell Julis’s fund, Canyon Capital Advisors, also dumped its stock, about $25.8 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Barrick Gold Corporation (USA) (NYSE:ABX)
Bullish insider trading is best served when the company in question has experienced transactions within the past six months. Over the last six-month time period, Barrick Gold Corporation (USA) (NYSE:ABX) 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 Barrick Gold Corporation (USA) (NYSE:ABX). These stocks are AngloGold Ashanti Limited (ADR) (NYSE:AU), Kinross Gold Corporation (USA) (NYSE:KGC), Yamana Gold Inc. (USA) (NYSE:AUY), Newmont Mining Corp (NYSE:NEM), and Goldcorp Inc. (USA) (NYSE:GG). All of these stocks are in the gold industry and their market caps match ABX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|AngloGold Ashanti Limited (ADR) (NYSE:AU)||22||0||0|
|Kinross Gold Corporation (USA) (NYSE:KGC)||27||0||0|
|Yamana Gold Inc. (USA) (NYSE:AUY)||25||0||0|
|Newmont Mining Corp (NYSE:NEM)||37||1||11|
|Goldcorp Inc. (USA) (NYSE:GG)||26||0||0|
With the returns exhibited by the aforementioned time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Barrick Gold Corporation (USA) (NYSE:ABX) shareholders fit into this picture quite nicely.