Hedge Funds Aren’t Crazy About Kinross Gold Corporation (USA) (NYSE:KGC) Anymore

Kinross Gold Corporation (USA) (NYSE:KGC) shareholders have witnessed a decrease in activity from the world’s largest hedge funds of late.

According to most stock holders, hedge funds are seen as unimportant, old investment vehicles of yesteryear. While there are over 8000 funds trading today, we look at the masters of this group, about 450 funds. It is estimated that this group controls most of all hedge funds’ total asset base, and by watching their highest performing picks, we have figured out a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 25 percentage points in 6.5 month (check out a sample of our picks).

Kinross Gold Corporation (USA) (NYSE:KGC)

Just as integral, positive insider trading sentiment is a second way to break down the investments you’re interested in. As the old adage goes: there are many incentives for an upper level exec to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).

With all of this in mind, we’re going to take a gander at the key action encompassing Kinross Gold Corporation (USA) (NYSE:KGC).

How are hedge funds trading Kinross Gold Corporation (USA) (NYSE:KGC)?

At year’s end, a total of 27 of the hedge funds we track held long positions in this stock, a change of -21% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially.

Of the funds we track, John Burbank’s Passport Capital had the biggest position in Kinross Gold Corporation (USA) (NYSE:KGC), worth close to $137 million billion, accounting for 5.3% of its total 13F portfolio. Coming in second is Jean-Marie Eveillard of First Eagle Investment Management, with a $134 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Jeffrey Vinik’s Vinik Asset Management, Peter Franklin Palmedo’s Sun Valley Gold and Martin Whitman’s Third Avenue Management.

Due to the fact that Kinross Gold Corporation (USA) (NYSE:KGC) has experienced a declination in interest from the entirety of the hedge funds we track, we can see that there exists a select few hedgies that slashed their entire stakes in Q4. Intriguingly, John Kleinheinz’s Kleinheinz Capital Partners cut the biggest investment of the “upper crust” of funds we monitor, comprising close to $27 million in stock., and George Soros of Soros Fund Management was right behind this move, as the fund dropped about $18 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 7 funds in Q4.

Insider trading activity in Kinross Gold Corporation (USA) (NYSE:KGC)

Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the last 180-day time frame, Kinross Gold Corporation (USA) (NYSE:KGC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns exhibited by our tactics, retail investors should always pay attention to hedge fund and insider trading sentiment, and Kinross Gold Corporation (USA) (NYSE:KGC) is no exception.

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