Is Yamana Gold Inc. (USA) (AUY) Going to Burn These Hedge Funds?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Yamana Gold Inc. (USA) (NYSE:AUY) .

Is Yamana Gold Inc. (USA) (NYSE:AUY) going to take off soon? Investors who are in the know are taking a bearish view. The number of long hedge fund bets fell by 4 recently. There were 24 hedge funds in our database with AUY holdings at the end of the previous quarter. At the end of this article we will also compare AUY to other stocks including East West Bancorp, Inc. (NASDAQ:EWBC), Starwood Property Trust, Inc. (NYSE:STWD), and American Greetings Corporation (NYSE:AM) to get a better sense of its popularity.

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How are hedge funds trading Yamana Gold Inc. (USA) (NYSE:AUY)?

At Q3’s end, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 17% decline from one quarter earlier. On the other hand, there were a total of 11 hedge funds with a bullish position in AUY at the beginning of this year. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

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Of the funds tracked by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the largest position in Yamana Gold Inc. (USA) (NYSE:AUY), worth close to $122.2 million. Coming in second is AQR Capital Management, led by Cliff Asness, holding a $65.1 million position. Remaining professional money managers with similar optimism encompass Kurt Billick’s Bocage Capital, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. At the top of the heap, Ken Griffin’s Citadel Investment Group sold off the largest position of the 700 funds studied by Insider Monkey, valued at close to $5.1 million in stock. Louis Bacon’s fund, Moore Global Investments, also said goodbye to its stock, about $5 million worth.

Let’s now review hedge fund activity in other stocks similar to Yamana Gold Inc. (USA) (NYSE:AUY). We will take a look at East West Bancorp, Inc. (NASDAQ:EWBC), Starwood Property Trust, Inc. (NYSE:STWD), American Greetings Corporation (NYSE:AM), and NewMarket Corporation (NYSE:NEU). All of these stocks’ market caps are closest to AUY’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EWBC 21 287737 -1
STWD 21 416130 0
AM 5 13251 2
NEU 14 103518 3

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $205 million. That figure was $225 million in AUY’s case. East West Bancorp, Inc. (NASDAQ:EWBC) is the most popular stock in this table. On the other hand American Greetings Corporation (NYSE:AM) is the least popular one with only 5 bullish hedge fund positions. Yamana Gold Inc. (USA) (NYSE:AUY) 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 EWBC might be a better candidate to consider taking a long position in.

Disclosure: None