Turquoise Hill Resources Ltd (TRQ): Are Hedge Funds Right About This Stock?

Due to the fact that Turquoise Hill Resources Ltd (NYSE:TRQ) has encountered falling interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of money managers that elected to cut their positions entirely by the end of the third quarter. Intriguingly, Steve Cohen’s Point72 Asset Management cut the largest position of the 700 funds studied by Insider Monkey, comprising an estimated $3.8 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dumped its stock, about $2.2 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Turquoise Hill Resources Ltd (NYSE:TRQ) but similarly valued. These stocks are EQT GP Holdings LP (NYSE:EQGP), Carlisle Companies, Inc. (NYSE:CSL), Equity Lifestyle Properties, Inc. (NYSE:ELS), and News Corp (NASDAQ:NWS). This group of stocks’ market caps match TRQ’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EQGP 3 24730 -1
CSL 24 362307 2
ELS 11 271254 -3
NWS 16 200879 2

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $215 million. That figure was $469 million in TRQ’s case. Carlisle Companies, Inc. (NYSE:CSL) is the most popular stock in this table. On the other hand EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 3 bullish hedge fund positions. Turquoise Hill Resources Ltd (NYSE:TRQ) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSL might be a better candidate to consider taking a long position in.

Disclosure: none.