Hedge Funds Are Selling Turquoise Hill Resources Ltd (TRQ)

Seeing as Turquoise Hill Resources Ltd (NYSE:TRQ) has faced falling interest from the smart money, we can see that there exists a select few funds who were dropping their entire stakes last quarter. Interestingly, Kenneth Mario Garschina’s Mason Capital Management sold off the largest position of the 700 funds watched by Insider Monkey, totaling an estimated $88.4 million in stock. Matthew Knauer and Mina Faltas’s fund, Nokota Management, also dumped its stock, about $14.5 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 4 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Turquoise Hill Resources Ltd (NYSE:TRQ). These stocks are Huntington Ingalls Industries Inc (NYSE:HII), The Ultimate Software Group, Inc. (NASDAQ:ULTI), Lennox International Inc. (NYSE:LII), and Helmerich & Payne, Inc. (NYSE:HP). This group of stocks’ market values resemble TRQ’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HII 32 495637 7
ULTI 16 192106 1
LII 20 130456 -5
HP 27 368613 3

As you can see these stocks had an average of 23.75 hedge funds with bullish positions and the average amount invested in these stocks was $297 million. That figure was $425 million in TRQ’s case. Huntington Ingalls Industries Inc (NYSE:HII) is the most popular stock in this table. On the other hand The Ultimate Software Group, Inc. (NASDAQ:ULTI) is the least popular one with only 16 bullish hedge fund positions. Turquoise Hill Resources Ltd (NYSE:TRQ) 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 HII might be a better candidate to consider a long position.