Lake Shore Gold Corp Ordinary Shares (Canada) (LSG): Are Hedge Funds Right About This Stock?

We view hedge fund activity in the stock unfavorable, but, in this case, there was only a single hedge fund selling its entire position: LMR Partners. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Two Sigma Advisors).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Lake Shore Gold Corp Ordinary Shares (Canada) (NYSEMKT:LSG) but similarly valued. We will take a look at Daktronics, Inc. (NASDAQ:DAKT), CU Bancorp (NASDAQ:CUNB), The First of Long Island Corporation (NASDAQ:FLIC), and Mechel OAO (ADR) (NYSE:MTL). This group of stocks’ market caps match LSG’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $14 million in LSG’s case. Daktronics, Inc. (NASDAQ:DAKT) is the most popular stock in this table. On the other hand The First of Long Island Corporation (NASDAQ:FLIC) is the least popular one with only 6 bullish hedge fund positions. Lake Shore Gold Corp Ordinary Shares (Canada) (NYSEMKT:LSG) is not the least popular stock in this group, but hedge fund interest is still not impressive. This is a slightly negative signal, and we’d rather spend our time researching stocks that hedge funds are collectively most fond of, such as DAKT in this particular case.