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How Eldorado Gold Corp (USA) (EGO) Stacks Up Against Its Peers

Seeing as Eldorado Gold Corp (USA) (NYSE:EGO) has witnessed bearish sentiment from the aggregate hedge fund industry, we can see that there is a sect of hedge funds who sold off their full holdings by the end of the third quarter. Intriguingly, First Eagle Investment Management sold off the largest investment of the 700 funds followed by Insider Monkey, totaling about $29 million in call options, and Jacob Gottlieb’s Visium Asset Management was right behind this move, as the fund dropped about $25.2 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Eldorado Gold Corp (USA) (NYSE:EGO) but similarly valued. These stocks are Rayonier Inc. (NYSE:RYN), Urban Outfitters, Inc. (NASDAQ:URBN), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), and Texas Roadhouse Inc (NASDAQ:TXRH). This group of stocks’ market caps are similar to EGO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RYN 15 346535 5
URBN 25 271624 0
TTWO 46 1228866 -1
TXRH 21 186122 7

As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $508 million. That figure was $112 million in EGO’s case. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is the most popular stock in this table. On the other hand Rayonier Inc. (NYSE:RYN) is the least popular one with only 15 bullish hedge fund positions. Eldorado Gold Corp (USA) (NYSE:EGO) is not the least popular stock in this group but hedge fund interest is still below average and it has less money invested in it than any of the other four stocks. This is a negative signal and we’d rather spend our time researching stocks that hedge funds are investing a lot of money in. In this regard TTWO might be a better candidate to consider a long position in.

Disclosure: None

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