Hedge Funds, Market Bearish On NovaGold Resources Inc. (USA) (NG) As It Posts Expected Earnings

What does the smart money think about NovaGold Resources Inc. (USA) (NYSEAMEX:NG)?

Heading into the second quarter, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decline of 7% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes significantly.

According to hedge fund experts at Insider Monkey, Paulson & Co, managed by John Paulson, holds the number one position in NovaGold Resources Inc. (USA) (NYSEAMEX:NG). Paulson & Co has a $104.9 million position in the stock, owning 35.62 million shares, which comprises 0.5% of its 13F portfolio. Coming in second is Baupost Group, led by Seth Klarman, holding a $64.2 million position and ownership of 21.69 million shares of the gold miner; the fund has 1.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Robert Pitts‘ Steadfast Capital Management, David Iben’s Kopernik Global Investors, and John A. Levin’s Levin Capital Strategies.

Due to the fact that NovaGold Resources Inc. (USA) (NYSEAMEX:NG) has experienced bearish sentiment from hedge fund managers, we can see that there lies a certain “tier” of hedgies who sold off their positions entirely in the first quarter. Intriguingly, Jim Simons‘ Renaissance Technologies said goodbye to the largest stake of the 700 funds followed by Insider Monkey, worth an estimated $481,000 in stock, while David Costen Haley of HBK Investments was right behind this move, as the fund manager said goodbye to about $72,000 worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell during the first quarter.

Despite potential gold mining prospects at Donlin Gold, the gold miner has reported a loss for another quarter; hence, we do not recommend a buy for the shares of NovaGold Resources at this moment.

Disclosure: None