The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Eldorado Gold Corp (USA) (NYSE:EGO) from the perspective of those elite funds.
Hedge fund interest in Eldorado Gold Corp (USA) (NYSE:EGO) shares was flat during the last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Rayonier Inc. (NYSE:RYN), Urban Outfitters, Inc. (NASDAQ:URBN), and Take-Two Interactive Software, Inc. (NASDAQ:TTWO) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
What have hedge funds been doing with Eldorado Gold Corp (USA) (NYSE:EGO)?
At Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged from the previous quarter. Hedge fund ownership has trended up slightly during the last year, but remains underwhelming. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, holds the number one position in Eldorado Gold Corp (USA) (NYSE:EGO). Blue Mountain Capital has a $29.5 million call position in the stock. Sitting at the No. 2 spot is Peter Franklin Palmedo of Sun Valley Gold, with a $14.5 million position. Some other peers that hold long positions include Robert Polak’s Anchor Bolt Capital, Cliff Asness’ AQR Capital Management and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.