Do Hedge Funds Love Newmont Mining Corp (NEM)?

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Due to the fact that Newmont Mining Corp (NYSE:NEM) has witnessed a decline in interest from the aggregate hedge fund industry, logic holds that there were a few hedgies that elected to cut their positions entirely by the end of the third quarter. At the top of the heap, Jean-Marie Eveillard’s First Eagle Investment Management cut the largest position of all the hedgies monitored by Insider Monkey, valued at close to $56.3 million in stock. William B. Gray’s fund, Orbis Investment Management, also sold off its stock, about $52.6 million worth of Newmont shares. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 1 fund by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Newmont Mining Corp (NYSE:NEM) but similarly valued. We will take a look at Illumina, Inc. (NASDAQ:ILMN), Wisconsin Energy Corporation (NYSE:WEC), SunTrust Banks, Inc. (NYSE:STI), and Campbell Soup Company (NYSE:CPB). This group of stocks’ market caps are closest to NEM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ILMN 28 433053 0
WEC 20 101872 7
STI 31 692819 1
CPB 27 290828 -2

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $380 million. That figure was $888 million in NEM’s case. SunTrust Banks, Inc. (NYSE:STI) is the most popular stock in this table. On the other hand Wisconsin Energy Corporation (NYSE:WEC) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Newmont Mining Corp (NYSE:NEM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.

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