Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 817 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Corvus Gold Inc. (NASDAQ:KOR) in this article.
Is Corvus Gold Inc. (NASDAQ:KOR) undervalued? Prominent investors were turning bullish. The number of long hedge fund bets went up by 4 in recent months. Corvus Gold Inc. (NASDAQ:KOR) was in 4 hedge funds’ portfolios at the end of the third quarter of 2020. Our calculations also showed that KOR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the eyes of most traders, hedge funds are seen as slow, old investment tools of yesteryear. While there are more than 8000 funds with their doors open at present, We choose to focus on the aristocrats of this club, about 850 funds. These investment experts watch over the lion’s share of the smart money’s total asset base, and by keeping an eye on their inimitable investments, Insider Monkey has identified many investment strategies that have historically outperformed Mr. Market. Insider Monkey’s flagship short hedge fund strategy outrun the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind we’re going to take a gander at the key hedge fund action surrounding Corvus Gold Inc. (NASDAQ:KOR).
Hedge fund activity in Corvus Gold Inc. (NASDAQ:KOR)
Heading into the fourth quarter of 2020, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4 from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position in KOR a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Eric Sprott’s Sprott Asset Management has the largest position in Corvus Gold Inc. (NASDAQ:KOR), worth close to $176.6 million, amounting to 7.2% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, with a $0.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism include Ken Griffin’s Citadel Investment Group, Mitch Cantor’s Mountain Lake Investment Management and . In terms of the portfolio weights assigned to each position Sprott Asset Management allocated the biggest weight to Corvus Gold Inc. (NASDAQ:KOR), around 7.23% of its 13F portfolio. Mountain Lake Investment Management is also relatively very bullish on the stock, dishing out 0.03 percent of its 13F equity portfolio to KOR.
Now, key money managers were breaking ground themselves. Sprott Asset Management, managed by Eric Sprott, assembled the biggest position in Corvus Gold Inc. (NASDAQ:KOR). Sprott Asset Management had $176.6 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $0.2 million position during the quarter. The other funds with brand new KOR positions are Ken Griffin’s Citadel Investment Group and Mitch Cantor’s Mountain Lake Investment Management.
Let’s now take a look at hedge fund activity in other stocks similar to Corvus Gold Inc. (NASDAQ:KOR). These stocks are Amerant Bancorp Inc. (NASDAQ:AMTB), MTS Systems Corporation (NASDAQ:MTSC), Cambridge Bancorp (NASDAQ:CATC), RedHill Biopharma Ltd (NASDAQ:RDHL), PolyMet Mining Corp. (NYSE:PLM), Kimbell Royalty Partners, LP (NYSE:KRP), and Bicycle Therapeutics plc (NASDAQ:BCYC). This group of stocks’ market valuations resemble KOR’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.4 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $177 million in KOR’s case. MTS Systems Corporation (NASDAQ:MTSC) is the most popular stock in this table. On the other hand Amerant Bancorp Inc. (NASDAQ:AMTB) is the least popular one with only 2 bullish hedge fund positions. Corvus Gold Inc. (NASDAQ:KOR) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for KOR is 22.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and surpassed the market again by 16.1 percentage points. Unfortunately KOR wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); KOR investors were disappointed as the stock returned -18.8% since the end of September (through 11/27) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.