Here is What Hedge Funds Think About IAMGOLD Corp (USA) (IAG)

Consequently, specific money managers were breaking ground themselves. Sprott Asset Management, led by Eric Sprott, initiated the most outsized position in IAMGOLD Corp (USA) (NYSE:IAG). According to its latest 13F filing, the fund had $4.2 million invested in the company at the end of the quarter. Peter Franklin Palmedo’s Sun Valley Gold also initiated a $2 million position during the quarter. The following funds were also among the new IAG investors: John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group, and Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as IAMGOLD Corp (USA) (NYSE:IAG) but similarly valued. We will take a look at Trustmark Corp (NASDAQ:TRMK), Intra-Cellular Therapies Inc (NASDAQ:ITCI), California Water Service Group (NYSE:CWT), and Time Inc (NYSE:TIME). This group of stocks’ market valuations are similar to IAG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRMK 7 33540 -1
ITCI 19 74738 -6
CWT 11 80176 0
TIME 21 147012 3

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $155 million in IAG’s case. Time Inc (NYSE:TIME) is the most popular stock in this table. On the other hand Trustmark Corp (NASDAQ:TRMK) is the least popular one with only 7 bullish hedge fund positions. IAMGOLD Corp (USA) (NYSE:IAG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TIME might be a better candidate to consider taking a long position in.

Disclosure: none.