Here is What Hedge Funds Think About Franco-Nevada Corporation (FNV)

Judging by the fact that Franco-Nevada Corporation (NYSE:FNV) has experienced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of money managers who sold off their entire stakes heading into Q4. Intriguingly, Michael Platt and William Reeves’s BlueCrest Capital Mgmt. cut the biggest position of all the hedgies followed by Insider Monkey, totaling an estimated $3.1 million in stock, and Mark Broach’s Manatuck Hill Partners was right behind this move, as the fund dropped about $1.3 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 1 fund heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Franco-Nevada Corporation (NYSE:FNV) but similarly valued. We will take a look at DexCom, Inc. (NASDAQ:DXCM), Robert Half International Inc. (NYSE:RHI), CIT Group Inc. (NYSE:CIT), and Westlake Chemical Corporation (NYSE:WLK). This group of stocks’ market values are similar to FNV’s market value.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $659 million. That figure was $477 million in FNV’s case. DexCom, Inc. (NASDAQ:DXCM) is the most popular stock in this table, while the other 3 stocks (RHI, CIT, WLK) share the same popularity. With only 15 bullish hedge fund positions, Franco-Nevada Corporation (NYSE:FNV) is the least popular stock in this group. To comprehend why the smart money isn’t behind this stock, further detailed analyses are needed. This doesn’t necessarily mean it is a stock not worth buying, it is possible that investors found it overvalued because they weren’t considering the bullish thesis. In any case, more research is advisable.