Hedge funds have been dumping gold-related stocks of late, and Kinross Gold Corporation (USA) (NYSE:KGC) is no exception.
In the eyes of many traders, hedge funds are perceived as delayed, outdated financial tools of an era lost to time. Although there are more than 8,000 hedge funds with their doors open currently, Insider Monkey looks at the elite of this group, close to 525 funds. It is assumed that this group oversees the lion’s share of all hedge funds’ total assets, and by paying attention to their best stock picks, we’ve determined a few investment strategies that have historically outstripped the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as necessary, positive insider trading activity is a second way to look at the world of equities. There are plenty of incentives for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if shareholders understand what to do (learn more here).
Furthermore, let’s discuss the recent info for Kinross Gold Corporation (USA) (NYSE:KGC).
What have hedge funds been doing with Kinross Gold Corporation (USA) (NYSE:KGC)?
At the end of the second quarter, a total of 22 of the hedge funds we track held long positions in this stock, a change of -19% from the previous quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings substantially.
Out of the hedge funds we follow, First Eagle Investment Management, managed by Matt McLennan, holds the largest position in Kinross Gold Corporation (USA) (NYSE:KGC). First Eagle Investment Management has a $317 million position in the stock, comprising 1% of its 13F portfolio. Coming in second is Third Avenue Management, managed by Martin Whitman, which held a $31.5 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Peter Franklin Palmedo’s Sun Valley Gold, Ken Griffin’s Citadel Investment Group and David Costen Haley’s HBK Investments.
As Kinross Gold Corporation (USA) (NYSE:KGC) has faced bearish sentiment from the smart money’s best and brightest, it’s safe to say that there exists a select few funds that slashed their positions entirely heading into Q2. Interestingly, Jeffrey Vinik’s Vinik Asset Management cut the biggest position of the “upper crust” of funds we watch, comprising close to $68.5 million in stock. Jeffrey Edwards’s fund, East Peak Partners, also said goodbye to its stock, about $4 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds heading into Q2.
Insider trading activity in Kinross Gold Corporation (USA) (NYSE:KGC)
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time frame, Kinross Gold Corporation (USA) (NYSE:KGC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Kinross Gold Corporation (USA) (NYSE:KGC). These stocks are Agnico-Eagle Mines Limited (USA) (NYSE:AEM), Yamana Gold Inc. (USA) (NYSE:AUY), Compania de Minas Buenaventura SA (ADR) (NYSE:BVN), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), and AngloGold Ashanti Limited (ADR) (NYSE:AU). This group of stocks are the members of the gold industry and their market caps resemble KGC’s market cap.