Kinross Gold Corporation (USA) (NYSE:KGC) are 6% in the red due to two factors today. First, gold spot prices have retreated by 1.33% in the morning frame as more and more investors anticipate that the Federal Reserve will raise rates during the coming FOMC meeting. If the Fed raises rates, gold demand won’t be as high and Kinross Gold won’t make as much in EBITDA. Second, shares of Kinross Gold Corporation (USA) (NYSE:KGC) are down following the news that unionized employees at the company’s Tasiast Mine have gone on strike. Kinross does not expect the strike to affect development of the Tasiast Phase One expansion, however, and remains open to negotiating with the labor union to resolve the strike. The stock is up by 14% year-to-date, which captured the attention of several hedge funds and Kinross saw an increase in popularity during the first quarter.
More specifically, the number of bullish hedge fund positions went up by six during the quarter and KGC was in 28 hedge funds’ portfolios at the end of the first quarter of 2016. There were 22 hedge funds in our database with KGC positions at the end of the previous quarter. At the end of this article we will also compare KGC to other stocks, including The Hain Celestial Group, Inc. (NASDAQ:HAIN), EPR Properties (NYSE:EPR), and Research In Motion Ltd (NASDAQ:BBRY) to get a better sense of its popularity.
According to most traders, hedge funds are viewed as unimportant, outdated investment vehicles of the past. While there are over 8000 funds with their doors open at the moment, We look at the crème de la crème of this group, approximately 700 funds. These hedge fund managers preside over the lion’s share of all hedge funds’ total asset base, and by tailing their finest investments, Insider Monkey has identified many investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Of the funds tracked by Insider Monkey, Jim Simons’s Renaissance Technologies has the most valuable position in Kinross Gold Corporation (USA) (NYSE:KGC), worth close to $160.3 million, corresponding to 0.3% of its total 13F portfolio. Coming in second is Kopernik Global Investors, led by David Iben, holding a $55.1 million position; 10.2% of its 13F portfolio is allocated to the company. Other members of the smart money that hold long positions contain Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.
Since Kinross Gold saw an increase in the number of funds with long positions, let’s take a look at some investors that initiated stakes in the first three months of 2016.