Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Did Hedge Funds Drop The Ball On Wheaton Precious Metals Corp. (WPM) ?

Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.

Wheaton Precious Metals Corp. (NYSE:WPM) has experienced a decrease in enthusiasm from smart money lately. Our calculations also showed that WPM isn’t among the 30 most popular stocks among hedge funds.

In the 21st century investor’s toolkit there are many signals investors can use to analyze their stock investments. A pair of the best signals are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass the S&P 500 by a solid amount (see the details here).


Let’s view the latest hedge fund action regarding Wheaton Precious Metals Corp. (NYSE:WPM).

What have hedge funds been doing with Wheaton Precious Metals Corp. (NYSE:WPM)?

At Q4’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of -5% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards WPM over the last 14 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.


Among these funds, Citadel Investment Group held the most valuable stake in Wheaton Precious Metals Corp. (NYSE:WPM), which was worth $71.4 million at the end of the third quarter. On the second spot was Kopernik Global Investors which amassed $59.7 million worth of shares. Moreover, Horizon Asset Management, Millennium Management, and Renaissance Technologies were also bullish on Wheaton Precious Metals Corp. (NYSE:WPM), allocating a large percentage of their portfolios to this stock.

Due to the fact that Wheaton Precious Metals Corp. (NYSE:WPM) has witnessed falling interest from hedge fund managers, we can see that there were a few funds that decided to sell off their entire stakes in the third quarter. Interestingly, Bernard Selz’s Selz Capital dropped the largest investment of the “upper crust” of funds watched by Insider Monkey, valued at close to $11.7 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund cut about $6.2 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Wheaton Precious Metals Corp. (NYSE:WPM). These stocks are Fidelity National Financial Inc (NYSE:FNF), Cenovus Energy Inc (NYSE:CVE), Melco Resorts & Entertainment Limited (NASDAQ:MLCO), and Herbalife Nutrition Ltd. (NYSE:HLF). This group of stocks’ market values match WPM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FNF 28 380210 -1
CVE 20 389711 7
MLCO 21 318428 -6
HLF 29 4017098 -9
Average 24.5 1276362 -2.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 24.5 hedge funds with bullish positions and the average amount invested in these stocks was $1276 million. That figure was $363 million in WPM’s case. Herbalife Nutrition Ltd. (NYSE:HLF) is the most popular stock in this table. On the other hand Cenovus Energy Inc (NYSE:CVE) is the least popular one with only 20 bullish hedge fund positions. Wheaton Precious Metals Corp. (NYSE:WPM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 15 most popular stocks among hedge funds returned 21.3% through April 8th and outperformed the S&P 500 ETF (SPY) by more than 5 percentage points. Hedge funds were also right about betting on WPM as the stock returned 22.6% and outperformed the market as well. You can see the entire list of these shrewd hedge funds here.

Disclosure: None. This article was originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.