How Richmont Mines Inc. (USA) (RIC) Stacks Up Against Its Peers

Billionaire hedge fund managers such as Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.

Hedge fund interest in Richmont Mines Inc. (USA) (NYSEMKT:RIC) shares was flat during the third quarter. This is usually a negative indicator. 9 hedge funds that we track owned the stock on September 30, same as on June 30. 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 Cass Information Systems (NASDAQ:CASS), Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), and EPIQ Systems, Inc. (NASDAQ:EPIQ) to gather more data points.

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Jeroen van den Broek/

Jeroen van den Broek/

How are hedge funds trading Richmont Mines Inc. (USA) (NYSEMKT:RIC)?

At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the previous quarter. By comparison, just 3 hedge funds held shares or bullish call options in RIC heading into this year, so hedge fund ownership has tripled in 2016. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).


According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies, one of the biggest hedge funds in the world, has the biggest position in Richmont Mines Inc. (USA) (NYSEMKT:RIC), worth close to $35.9 million. The second most bullish fund manager is Sprott Asset Management, led by Eric Sprott, which holds a $21.8 million position. Remaining members of the smart money with similar optimism consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Chuck Royce’s Royce & Associates, and Cliff Asness’ AQR Capital Management. We should note that Sprott Asset Management is among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management sold off the biggest position of all the investors monitored by Insider Monkey, comprising about $0.6 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund dropped about $0.1 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Richmont Mines Inc. (USA) (NYSEMKT:RIC) but similarly valued. These stocks are Cass Information Systems (NASDAQ:CASS), Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), EPIQ Systems, Inc. (NASDAQ:EPIQ), and WCI Communities Inc (NYSE:WCIC). All of these stocks’ market caps resemble RIC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CASS 5 8387 -1
DHIL 5 63669 -1
EPIQ 9 115942 -2
WCIC 14 120478 2

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $75 million in RIC’s case. WCI Communities Inc (NYSE:WCIC) is the most popular stock in this table. On the other hand Cass Information Systems (NASDAQ:CASS) is the least popular one with only 5 bullish hedge fund positions. Richmont Mines Inc. (USA) (NYSEAMEX:RIC) 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 WCIC might be a better candidate to consider taking a long position in.

Disclosure: None