Goldcorp Inc. (USA) (GG): All That Glitters May Not Be Gold

Seeing as Goldcorp Inc. (USA) (NYSE:GG) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there exists a select few fund managers who sold off their entire stakes heading into Q4. At the top of the heap, First Eagle Investment Management cut the biggest stake of the 700 funds tracked by Insider Monkey, worth about $754.9 million in stock, and David Halpert’s Prince Street Capital Management was right behind this move, as the fund cut about $26.5 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest fell by 4 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Goldcorp Inc. (USA) (NYSE:GG). We will take a look at CenturyLink, Inc. (NYSE:CTL), Expedia Inc (NASDAQ:EXPE), Liberty Interactive Corp (NASDAQ:QVCA), and Nucor Corporation (NYSE:NUE). This group of stocks’ market valuations resemble GG’s market valuation.

As you can see these stocks had an average of 49.25 hedge funds with bullish positions and the average amount invested in these stocks was $2.17 billion. That figure was $311 million in GG’s case. Liberty Interactive Corp (NASDAQ:QVCA) is the most popular stock in this table. On the other hand CenturyLink, Inc. (NYSE:CTL) is the least popular one with only 29 bullish hedge fund positions. Compared to these stocks Goldcorp Inc. (USA) (NYSE:GG) is even less popular than CTL. 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.

Disclosure: None