Now, specific money managers were breaking ground themselves. PDT Partners, a quant fund managed by Peter Muller, created the largest position in NovaGold Resources Inc. (USA) (NYSEAMEX:NG). PDT Partners had $0.4 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 NG investors: Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as NovaGold Resources Inc. (USA) (NYSEAMEX:NG) but similarly valued. These stocks are Sanderson Farms, Inc. (NASDAQ:SAFM), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), Qunar Cayman Islands Ltd (NASDAQ:QUNR), and NOW Inc (NYSE:DNOW). All of these stocks’ market caps are closest to NG’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $216 million. That figure was $300 million in NG’s case. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is the most popular stock in this table. On the other hand Qunar Cayman Islands Ltd (NASDAQ:QUNR) is the least popular one with only 7 bullish hedge fund positions. NovaGold Resources Inc. (USA) (NYSEAMEX:NG) 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 PLAY might be a better candidate to consider a long position.