Is Gold Fields Limited (ADR) (GFI) A Good Stock To Buy?

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 Jean-Marie Eveillard’s First Eagle Investment Management sold off the biggest stake of the 700 funds monitored by Insider Monkey, totaling close to $13.1 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $3.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Gold Fields Limited (ADR) (NYSE:GFI) but similarly valued. These stocks are Pool Corporation (NASDAQ:POOL), BWX Technologies Inc (NYSE:BWXT), Popular Inc (NASDAQ:BPOP), and CalAtlantic Group Inc (NYSE:CAA). All of these stocks’ market caps are closest to GFI’s market cap.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $552 million. That figure was $255 million in GFI’s case. CalAtlantic Group Inc (NYSE:CAA) is the most popular stock in this table. On the other hand Pool Corporation (NASDAQ:POOL) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks Gold Fields Limited (ADR) (NYSE:GFI) is even less popular than POOL. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None