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Should You Buy Goldcorp Inc. (USA) (GG)?

Consequently, specific money managers have jumped into Goldcorp Inc. (USA) (NYSE:GG) headfirst. Highfields Capital Management initiated the biggest position in Goldcorp Inc. (USA) (NYSE:GG). Robert Bishop’s Impala Asset Management also initiated an $22.8 million position during the quarter. The other funds with new positions in the stock are Benjamin A. Smith’s Laurion Capital Management, Steve Cohen’s Point72 Asset Management, and Matthew Tewksbury’s Stevens Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Goldcorp Inc. (USA) (NYSE:GG) but similarly valued. We will take a look at Grifols SA, Barcelona (NASDAQ:GRFS), Lam Research Corporation (NASDAQ:LRCX), Jarden Corp (NYSE:JAH), and Ameren Corp (NYSE:AEE). This group of stocks’ market valuations are closest to GG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GRFS 14 648378 1
LRCX 45 1043496 -3
JAH 42 1462444 9
AEE 18 459329 0

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $903 million. That figure was $871 million in GG’s case. Lam Research Corporation (NASDAQ:LRCX) is the most popular stock in this table. On the other hand Grifols SA, Barcelona (NASDAQ:GRFS) is the least popular one with only 14 bullish hedge fund positions. Goldcorp Inc. (USA) (NYSE:GG) 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 LRCX might be a better candidate to consider a long position.

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