Sandstorm Gold Ltd. (SAND): Are Hedge Funds Right About This Stock?

As one would reasonably expect, specific money managers have been driving this bullishness. PEAK6 Capital Management, managed by Matthew Hulsizer, assembled the most outsized position in Sandstorm Gold Ltd. (NYSEMKT:SAND). PEAK6 Capital Management had $0 million invested in the company at the end of the quarter.

Let’s check out hedge fund activity in other stocks similar to Sandstorm Gold Ltd. (NYSE:SAND). We will take a look at Landec Corporation (NASDAQ:LNDC), Stage Stores Inc (NYSE:SSI), Ardmore Shipping Corp (NYSE:ASC), and Halcon Resources Corp (NYSE:HK). This group of stocks’ market valuations are similar to SAND’s market valuation.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $26 million. That figure was $24 million in SAND’s case. Landec Corporation (NASDAQ:LNDC) is the most popular stock in this table. On the other hand Halcon Resources Corp (NYSE:HK) is the least popular one with only 6 bullish hedge fund positions. Sandstorm Gold Ltd. (NYSE:SAND) 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 LNDC might be a better candidate to consider a long position.