Is Asanko Gold Inc (AKG) Going to Burn These Hedge Funds?

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Seeing as Asanko Gold Inc (NYSEMKT:AKG) has witnessed declining sentiment from the smart money, it’s safe to say that there were a few hedgies that slashed their full holdings last quarter. Intriguingly, Ken Griffin’s Citadel Investment Group dumped the largest investment of the 700 funds monitored by Insider Monkey, totaling close to $0.1 million in call options, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dumped about $0.1 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Asanko Gold Inc (NYSEMKT:AKG) but similarly valued. We will take a look at Barnes & Noble, Inc. (NYSE:BKS), ARMOUR Residential REIT, Inc. (NYSE:ARR), Dominion Diamond Corp (NYSE:DDC), and Babcock & Wilcox Enterprises Inc (NYSE:BW). This group of stocks’ market values resemble AKG’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BKS 15 153873 -6
ARR 6 22230 2
DDC 14 73277 0
BW 20 198761 0

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $112 million. That figure was $88 million in AKG’s case. Babcock & Wilcox Enterprises Inc (NYSE:BW) is the most popular stock in this table. On the other hand ARMOUR Residential REIT, Inc. (NYSE:ARR) is the least popular one with only 6 bullish hedge fund positions. Asanko Gold Inc (NYSEMKT:AKG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BW might be a better candidate to consider taking a long position in.

Disclosure: None

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