Here Is What Hedge Funds Think About Sibanye Gold Ltd (ADR) (SBGL)

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. It’s worth mentioning that Phill Gross and Robert Atchinson’s Adage Capital Management got rid of the largest stake of all the investors followed by Insider Monkey, comprising an estimated $23.2 million in stock. Kurt Billick’s fund, Bocage Capital, also cut its stock, about $9.2 million worth.

Let’s now review hedge fund activity in other stocks similar to Sibanye Gold Ltd (ADR) (NYSE:SBGL). We will take a look at Apple Hospitality REIT Inc (NYSE:APLE), ONE Gas Inc (NYSE:OGS), Hawaiian Electric Industries, Inc. (NYSE:HE), and Snyder S Lance Inc (NASDAQ:LNCE). All of these stocks’ market caps are similar to SBGL’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. That figure was $21 million in SBGL’s case. Hawaiian Electric Industries, Inc. (NYSE:HE) is the most popular stock in this table. On the other hand Snyder S Lance Inc (NASDAQ:LNCE) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Sibanye Gold Ltd (ADR) (NYSE:SBGL) is even less popular than LNCE. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None