Sinking Smart Money Sentiment for Ferroglobe PLC (GSM) Becoming A Trend

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Intriguingly, Benjamin A. Smith’s Laurion Capital Management got rid of the biggest investment of the 700 funds monitored by Insider Monkey, valued at about $7.1 million in stock. Jim Simons’ fund, Renaissance Technologies, also dumped its stock, about $2.8 million worth.

Let’s now review hedge fund activity in other stocks similar to Ferroglobe PLC (NASDAQ:GSM). We will take a look at NIC Inc. (NASDAQ:EGOV), Noble Corporation (NYSE:NE), Enerplus Corp (USA) (NYSE:ERF), and California Water Service Group (NYSE:CWT). All of these stocks’ market caps resemble GSM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EGOV 13 61969 1
NE 34 277566 1
ERF 21 89116 7
CWT 11 80176 0

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $127 million. That figure was $236 million in GSM’s case. Noble Corporation (NYSE:NE) is the most popular stock in this table. On the other hand California Water Service Group (NYSE:CWT) is the least popular one with only 11 bullish hedge fund positions. Ferroglobe PLC (NASDAQ:GSM) 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 NE might be a better candidate to consider taking a long position in.

Disclosure: None

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