Is B2Gold Corp (BTG) A Good Stock To Buy?

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As industrywide interest jumped, specific money managers were breaking ground themselves. Two Sigma Advisors, led by John Overdeck and David Siegel, created the most outsized position in B2Gold Corp (NYSEMKT:BTG). Two Sigma Advisors had $0.9 million invested in the company at the end of the quarter. Thomas Bailard’s Bailard Inc also made a small investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as B2Gold Corp (NYSEMKT:BTG) but similarly valued. We will take a look at CoreSite Realty Corp (NYSE:COR), NorthStar Asset Management Group Inc (NYSE:NSAM), Lumentum Holdings Inc (NASDAQ:LITE), and Lexmark International Inc (NYSE:LXK). This group of stocks’ market valuations resemble BTG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
COR 18 90393 0
NSAM 47 1035762 -1
LITE 28 147874 3
LXK 25 303638 -3

As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $394 million. That figure was $72 million in BTG’s case. NorthStar Asset Management Group Inc (NYSE:NSAM) is the most popular stock in this table. On the other hand CoreSite Realty Corp (NYSE:COR) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks B2Gold Corp (NYSEMKT:BTG) is even less popular than COR. 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 many view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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