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Hedge Funds Have Never Been This Bullish On Sandstorm Gold Ltd. (SAND)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have gone over 730 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 28th. In this article we look at what those investors think of Sandstorm Gold Ltd. (NYSE:SAND).

Sandstorm Gold Ltd. (NYSE:SAND) was in 15 hedge funds’ portfolios at the end of the second quarter of 2019. SAND has experienced an increase in support from the world’s most elite money managers recently. There were 12 hedge funds in our database with SAND positions at the end of the previous quarter. Our calculations also showed that SAND isn’t among the 30 most popular stocks among hedge funds (see the video below).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

In the 21st century investor’s toolkit there are numerous metrics market participants put to use to evaluate publicly traded companies. Two of the most useful metrics are hedge fund and insider trading activity. We have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the market by a healthy amount (see the details here).

John Overdeck of Two Sigma

Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let’s view the key hedge fund action regarding Sandstorm Gold Ltd. (NYSE:SAND).

How are hedge funds trading Sandstorm Gold Ltd. (NYSE:SAND)?

At Q2’s end, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 25% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SAND over the last 16 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

SAND_oct2019

The largest stake in Sandstorm Gold Ltd. (NYSE:SAND) was held by Sprott Asset Management, which reported holding $15.2 million worth of stock at the end of March. It was followed by Horizon Asset Management with a $13.1 million position. Other investors bullish on the company included Arrowstreet Capital, Citadel Investment Group, and Marshall Wace LLP.

As aggregate interest increased, key money managers have jumped into Sandstorm Gold Ltd. (NYSE:SAND) headfirst. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the most outsized position in Sandstorm Gold Ltd. (NYSE:SAND). Arrowstreet Capital had $6.5 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $4.5 million position during the quarter. The other funds with new positions in the stock are Mark Broach’s Manatuck Hill Partners, George Zweig, Shane Haas and Ravi Chander’s Signition LP, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sandstorm Gold Ltd. (NYSE:SAND) but similarly valued. We will take a look at Dicerna Pharmaceuticals Inc (NASDAQ:DRNA), Voyager Therapeutics, Inc. (NASDAQ:VYGR), Addus Homecare Corporation (NASDAQ:ADUS), and NextPoint Residential Trust Inc (NYSE:NXRT). All of these stocks’ market caps resemble SAND’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DRNA 16 289627 -3
VYGR 18 194812 0
ADUS 17 103020 3
NXRT 10 182442 0
Average 15.25 192475 0

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $192 million. That figure was $61 million in SAND’s case. Voyager Therapeutics, Inc. (NASDAQ:VYGR) is the most popular stock in this table. On the other hand NextPoint Residential Trust Inc (NYSE:NXRT) is the least popular one with only 10 bullish hedge fund positions. Sandstorm Gold Ltd. (NYSE:SAND) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on SAND, though not to the same extent, as the stock returned 1.8% during the third quarter and outperformed the market.

Disclosure: None. This article was originally published at Insider Monkey.

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