Because Seabridge Gold, Inc. (USA) (NYSE:SA) has experienced bearish sentiment from the smart money, it’s safe to say that there is a sect of fund managers that elected to cut their positions entirely in the third quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cashed in the biggest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $4.2 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund cut about $2.4 million worth of shares.
Let’s also examine hedge fund activity in other stocks similar to Seabridge Gold, Inc. (USA) (NYSE:SA). These stocks are 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), Novanta Inc (USA) (NASDAQ:NOVT), Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), and Mechel PAO (ADR) (NYSE:MTL). This group of stocks’ market valuations match SA’s market valuation.
|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 12 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $12 million in SA’s case. Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is the most popular stock in this table. On the other hand Mechel PAO (ADR) (NYSE:MTL) is the least popular one with only 3 bullish hedge fund positions. Seabridge Gold, Inc. (USA) (NYSE:SA) 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 ASPS might be a better candidate to consider taking a long position in.