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Golden Star Resources Ltd. (USA) (GSS): Hedge Funds Are Snapping Up

As industrywide interest jumped, specific money managers were breaking ground themselves. Alden Global Capital established the most outsized position in Golden Star Resources Ltd. (USA) (NYSEMKT:GSS). Alden Global Capital had $2.1 million invested in the company at the end of the quarter. GLG Partners also initiated a $1.1 million position during the quarter. The other funds with brand new GSS positions are Folger Hill Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Michael Platt and William Reeves’ BlueCrest Capital Mgmt..

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) but similarly valued. These stocks are San Juan Basin Royalty Trust (NYSE:SJT), Oil-Dri Corporation of America (NYSE:ODC), Mitek Systems, Inc. (NASDAQ:MITK), and AxoGen, Inc. (NASDAQ:AXGN). This group of stocks’ market valuations resemble GSS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SJT 6 9223 -1
ODC 5 43673 0
MITK 17 31319 -1
AXGN 11 40283 4

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $14 million in GSS’s case. Mitek Systems, Inc. (NASDAQ:MITK) is the most popular stock in this table. On the other hand Oil-Dri Corporation of America (NYSE:ODC) is the least popular one with only 5 bullish hedge fund positions. Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) 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. In this regard MITK might be a better candidate to consider taking a long position in.

Disclosure: None

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