How Nevsun Resources (USA) (NSU) Stacks Up Against Its Peers

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Intriguingly, Jacob Gottlieb’s Visium Asset Management dropped the largest investment of all the investors followed by Insider Monkey, valued at about $3.7 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also dumped its small position in the stock during Q3.

Let’s now review hedge fund activity in other stocks similar to Nevsun Resources (USA) (NYSEMKT:NSU). These stocks are GMS Inc (NYSE:GMS), Penn West Petroleum Ltd (USA) (NYSE:PWE), General American Investors Co. Inc. (NYSE:GAM), and Capstead Mortgage Corporation (NYSE:CMO). All of these stocks’ market caps are similar to NSU’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $34 million. That figure was $61 million in NSU’s case. Penn West Petroleum Ltd (USA) (NYSE:PWE) is the most popular stock in this table. On the other hand General American Investors Co. Inc. (NYSE:GAM) is the least popular one with only 4 bullish hedge fund positions. Nevsun Resources (USA) (NYSEMKT:NSU) 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 PWE might be a better candidate to consider taking a long position in.

Disclosure: None