Hedge Funds Aren’t Crazy About New Gold Inc. (USA) (NGD) Anymore

Due to the fact that New Gold Inc. (USA) (NYSEMKT:NGD) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds that elected to cut their full holdings last quarter. At the top of the heap, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners said goodbye to the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling close to $1.7 million in stock. Michael Platt and William Reeves’ fund, BlueCrest Capital Mgmt., also sold off its stock, about $1 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 5 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to New Gold Inc. (USA) (NYSEMKT:NGD). These stocks are Exponent, Inc. (NASDAQ:EXPO), Crestwood Midstream Partners LP (NYSE:CMLP), NovaGold Resources Inc. (USA) (NYSEMKT:NG), and Insmed Incorporated (NASDAQ:INSM). This group of stocks’ market values are similar to NGD’s market value.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $152 million, versus $61 million in NGD’s case. NovaGold Resources Inc. (USA) (NYSEMKT:NG) is the most popular stock in this table. On the other hand Crestwood Midstream Partners LP (NYSE:CMLP) is the least popular one with only 6 bullish hedge fund positions. New Gold Inc. (USA) (NYSEMKT:NGD) 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 NG might be a better candidate to consider a long position.