Is Northern Dynasty Minerals Ltd (USA) (NAK) A Good Stock To Buy?

As aggregate interest increased, specific money managers have jumped into Northern Dynasty Minerals Ltd (USA) (NYSEAMEX:NAK) headfirst. Empyrean Capital Partners assembled the most valuable position in Northern Dynasty Minerals Ltd (USA) (NYSEAMEX:NAK). Empyrean Capital Partners had $0.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.1 million position during the quarter. The following funds were also among the new NAK investors: Ken Griffin’s Citadel Investment Group and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks similar to Northern Dynasty Minerals Ltd (USA) (NYSEAMEX:NAK). We will take a look at Investors Title Company (NASDAQ:ITIC), Brookfield High Income Fund Inc (NYSE:HHY), Rosetta Stone Inc (NYSE:RST), and Planet Payment Inc (NASDAQ:PLPM). This group of stocks’ market valuations are closest to NAK’s market valuation.

As you can see these stocks had an average of 6.25 hedge funds with bullish positions and the average amount invested in these stocks was $33 million. That figure was $9 million in NAK’s case. Rosetta Stone Inc (NYSE:RST) is the most popular stock in this table. On the other hand Investors Title Company (NASDAQ:ITIC) is the least popular one with only 2 bullish hedge fund positions. Northern Dynasty Minerals Ltd (USA) (NYSEAMEX:NAK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RST might be a better candidate to consider taking a long position in.