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
