Potash Corp./Saskatchewan (USA) (POT) Down After K+S AG Bid, Threat Of Going ‘Hostile’; But Is The Price Too High?

What does the smart money think about Potash Corp./Saskatchewan (USA) (NYSE:POT)?

Of the funds tracked by Insider Monkey, Jean-Marie Eveillard’s First Eagle Investment Management had the largest stake in Potash Corp./Saskatchewan (USA) (NYSE:POT), of 18.9 million shares worth $609.54 million. The stake made up 1.45% of the firm’s 13F portfolio. Dmitry Balyasny’s Balyasny Asset Management followed with 2.52 million shares, worth close to $81.4 million, comprising 0.7% of its total 13F portfolio. Other members of the smart money that hold long positions comprise Adage Capital Management, led by Phill Gross and Robert Atchinson, Ray Dalio’s Bridgewater Associates, and David E. Shaw’s D.E. Shaw & Co., L.P.

Due to the fact that Potash Corp./Saskatchewan (USA) (NYSE:POT) has faced a declination in interest from the smart money, we can see that there is a sect of money managers that elected to cut their positions entirely in the first quarter. Intriguingly, Andreas Halvorsen‘s Viking Global dumped the biggest investment of the “upper crust” of funds followed by Insider Monkey; about 3.15 million shares, totaling an estimated $111.2 million in the stock. Robert Bishop of Impala Asset Management was right behind this move, as the hedgie cut about 1.12 million shares worth $39.5 million from his own portfolio. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 1 in the first quarter.

With indicators pointing to the K+S AG offer being rejected, as well as Potash Corp.’s problems and uninspiring performance for the year, which has led to decreased hedge fund interest, we do not recommend a long position in Potash Corp./Saskatchewan (USA) (NYSE:POT) at the moment. The market seems to be moving towards the same thinking, as shares of Potash have given back 2% of yesterday’s gains so far.

Disclosure: None