Hedge Fund Interest In Coeur Mining, Inc. (CDE) Is Waning

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the first quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4.5 years and analyze what the smart money thinks of Coeur Mining, Inc. (NYSE:CDE) based on that data.

Coeur Mining, Inc. (NYSE:CDE) shareholders have witnessed a decrease in activity from the world’s largest hedge funds of late. Our calculations also showed that CDE isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

In the 21st century investor’s toolkit there are dozens of gauges shareholders employ to value stocks. Two of the most under-the-radar gauges are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the best picks of the top investment managers can beat the broader indices by a superb margin (see the details here).

Peter Rathjens Arrowstreet Capital 394

Peter Rathjens of Arrowstreet Capital

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, blockchain technology’s influence will go beyond online payments. So, we are checking out this futurist’s moonshot opportunities in tech stocks. We interview hedge fund managers and ask them about their best ideas. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. For example we are checking out stocks recommended/scorned by legendary Bill Miller. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. Now let’s analyze the fresh hedge fund action regarding Coeur Mining, Inc. (NYSE:CDE).

What have hedge funds been doing with Coeur Mining, Inc. (NYSE:CDE)?

At Q1’s end, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CDE over the last 18 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies has the most valuable position in Coeur Mining, Inc. (NYSE:CDE), worth close to $18.9 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by D E Shaw, led by D. E. Shaw, holding a $5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish encompass Ken Griffin’s Citadel Investment Group, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Greg Eisner’s Engineers Gate Manager. In terms of the portfolio weights assigned to each position Sloane Robinson Investment Management allocated the biggest weight to Coeur Mining, Inc. (NYSE:CDE), around 1.47% of its 13F portfolio. Engineers Gate Manager is also relatively very bullish on the stock, dishing out 0.09 percent of its 13F equity portfolio to CDE.

Since Coeur Mining, Inc. (NYSE:CDE) has faced declining sentiment from the smart money, it’s safe to say that there were a few hedge funds who sold off their positions entirely in the first quarter. At the top of the heap, Eric Sprott’s Sprott Asset Management dropped the biggest position of all the hedgies watched by Insider Monkey, comprising an estimated $11.3 million in stock, and David Harding’s Winton Capital Management was right behind this move, as the fund cut about $3.6 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 1 funds in the first quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Coeur Mining, Inc. (NYSE:CDE) but similarly valued. We will take a look at Adverum Biotechnologies, Inc. (NASDAQ:ADVM), American Woodmark Corporation (NASDAQ:AMWD), Chase Corporation (NYSE:CCF), and HealthStream, Inc. (NASDAQ:HSTM). This group of stocks’ market caps match CDE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ADVM 25 352608 4
AMWD 11 14493 -6
CCF 10 67591 1
HSTM 17 46967 4
Average 15.75 120415 0.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $120 million. That figure was $36 million in CDE’s case. Adverum Biotechnologies, Inc. (NASDAQ:ADVM) is the most popular stock in this table. On the other hand Chase Corporation (NYSE:CCF) is the least popular one with only 10 bullish hedge fund positions. Coeur Mining, Inc. (NYSE:CDE) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.3% in 2020 through June 25th and still beat the market by 16.8 percentage points. A small number of hedge funds were also right about betting on CDE as the stock returned 46.1% during the second quarter and outperformed the market by an even larger margin.

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