These 3 Gold Stocks Are Hot Today But Hedge Fund Metric Says One Should Be Avoided

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The same cannot be said about Newmont Mining Corp (NYSE:NEM), whose shares are up by a similar amount today, of just under 6%. While there was an increase in the number of hedge funds long in the stock, the total value of their investments saw a net decline in the second quarter. There were 38 hedge funds with long positions in Newmont Mining Corp (NYSE:NEM) by the end of June, up by three from March 31. The value of their holdings increased by 3.69% in the second quarter to $627.88 million, but the company’s stock price jumped by a larger 7.60% in the same interval. Add to this the fact that only 5.10% of the company’s shares are owned by hedge funds we track and we have a somewhat bearish overall sentiment. By the end of June, William B. Gray’s Orbis Investment Management held about 5.81 million shares of Newmont Mining.

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Meanwhile, hedge funds were more bullish when it comes to Barrick Gold Corporation (USA) (NYSE:ABX), which is also having the best day of the three so far, gaining nearly 8%. Looking at our hedge fund data, we see that even though the number of hedge funds with long positions in the stock was up by just one to 42 during the second quarter, those long in the stock substantially increased their holdings to $1.64 billion, up by 16.8%. Hedge funds also owned 13.2% of Barrick Gold Corporation (USA) (NYSE:ABX)’s shares. Jim Simons’ Renaissance Technologies owned about 14.03 million shares of Barrick Gold at the end of the second quarter.

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Disclosure: None

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