Hedge Funds Are Getting Into Mining These Five Mining Stocks

#3 Freeport-McMoRan Inc (NYSE:FCX)

– Number of Hedge Fund Holders (as of March 31): 34
– Total Value of Hedge Fund Holdings (as of March 31): $1.59 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 12.30%

The number of funds from our database long the stock fell by three quarter-over-quarter to 34 at the end of March, while Freeport-McMoRan Inc (NYSE:FCX)’s shares have surged over 60% year-to-date. Given how beaten-up the stock was at the end of 2015, and the 80% surge in crude prices since February, it’s not surprising that Freeport-McMoRan Inc (NYSE:FCX) shares would do well. The company has lately been selling some of its assets to deleverage and is rumored to be considering selling a 20% stake of its assets in North and South America for as much as $2 billion. If copper and oil rallies and Freeport-McMoRan gets more than-expected from its asset sales, look for the stock to continue to do well.

#2 Newmont Mining Corp (NYSE:NEM)

– Number of Hedge Fund Holders (as of March 31): 37
– Total Value of Hedge Fund Holdings (as of March 31): $896.85 million
– Hedge Fund Holdings as Percent of Float (as of March 31): 6.40%

Newmont Mining Corp (NYSE:NEM) reported first quarter earnings of $0.34 per share on sales of $2 billion, beating estimates by $0.14 and $130 million, respectively. Results were better-than-expected because management did a good job holding down costs and increasing production. The company’s all-in sustaining costs for gold for the first quarter were $828 per ounce versus $849 per ounce in the same quarter of last year. Analysts at Goldman Sachs see more upside ahead and earlier this month they upgraded the stock to ‘Buy’ from ‘Neutral’ and increased the price target to $36 from $23.30.

#1 Barrick Gold Corporation (USA) (NYSE:ABX)

– Number of Hedge Fund Holders (as of March 31): 49
– Total Value of Hedge Fund Holdings (as of March 31): $2.73 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 17.30%

With 49 elite funds holding shares at the end of March, Barrick Gold Corporation (USA) (NYSE:ABX) is the most popular mining stock among the smart money crowd. Among the most bullish of the elite investors long the stock is George Soros‘ Soros Fund Management, which added a new stake of 19.4 million shares in Barrick in the first quarter, which represented 5.82% of the fund’s equity portfolio. George Soros is famous for his macro-economic calls and successfully played the previous gold bubble from 2008 to 2011. With his entry into Barrick, it seems Soros Fund Management is either bullish again, or hedging in case of a future economic meltdown in China or elsewhere.

Disclosure: none