Is B2Gold Corp (BTG) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: LMR Partners. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case, because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Renaissance Technologies).

Let’s now review hedge fund activity in other stocks similar to B2Gold Corp (NYSEMKT:BTG). These stocks are Investors Real Estate Trust (NYSE:IRET), Fortress Transprtn and Infr Investrs LLC (NYSE:FTAI), Diamond Foods, Inc. (NASDAQ:DMND), and Benefitfocus Inc (NASDAQ:BNFT). This group of stocks’ market values are similar to BTG’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $261 million. That figure was just $14 million in BTG’s case. Diamond Foods, Inc. (NASDAQ:DMND) is the most popular stock in this table. On the other hand Fortress Transprtn and Infr Investrs LLC (NYSE:FTAI) is the least popular one with only 5 bullish hedge fund positions. B2Gold Corp (NYSEMKT:BTG) 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 DMND might be a better candidate to consider a long position.