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Is NovaGold Resources Inc. (USA) (NG) A Good Stock To Buy?

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
SAFM 21 202162 4
PLAY 28 425940 1
QUNR 7 10274 0
DNOW 16 227065 -2

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.

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