Is Klondex Mines Ltd (KLDX) a Good Stock to Buy?

Now, specific money managers have been driving this bullishness. BlueCrest Capital Mgmt., led by Michael Platt and William Reeves, assembled the largest position in Klondex Mines Ltd (NYSE:KLDX). BlueCrest Capital Mgmt. had $0.3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.3 million position during the quarter. The following funds were also among the new KLDX investors: Peter Muller’s PDT Partners and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Klondex Mines Ltd (NYSE:KLDX) but similarly valued. We will take a look at Teladoc Inc (NYSE:TDOC), Meridian Interstate Bancorp, Inc. (NASDAQ:EBSB), Energy Recovery, Inc. (NASDAQ:ERII), and Raven Industries, Inc. (NASDAQ:RAVN). This group of stocks’ market valuations are closest to KLDX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TDOC 6 46224 -1
EBSB 13 112923 -1
ERII 16 34374 4
RAVN 13 78194 4

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $43 million in KLDX’s case. Energy Recovery, Inc. (NASDAQ:ERII) is the most popular stock in this table. On the other hand Teladoc Inc (NYSE:TDOC) is the least popular one with only 6 bullish hedge fund positions. Klondex Mines Ltd (NYSE:KLDX) 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 ERII might be a better candidate to consider taking a long position in.

Disclosure: None