What Do Hedge Funds Think of Cliffs Natural Resources Inc (CLF)?

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Seeing as Cliffs Natural Resources Inc (NYSE:CLF) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there is a sect of hedgies who were dropping their entire stakes by the end of the third quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the largest stake of the 700 funds monitored by Insider Monkey, worth close to $10.6 million in stock, and Jonathan Barrett and Paul Segal’s Luminus Management was right behind this move, as the fund cut about $5.3 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cliffs Natural Resources Inc (NYSE:CLF) but similarly valued. We will take a look at A10 Networks Inc (NYSE:ATEN), Theravance Biopharma Inc (NASDAQ:TBPH), Kirkland’s, Inc. (NASDAQ:KIRK), and XO Group Inc (NYSE:XOXO). This group of stocks’ market valuations are closest to CLF’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ATEN 14 31137 4
TBPH 10 105005 -3
KIRK 11 46620 -4
XOXO 16 108910 -1

As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $56 million in CLF’s case. XO Group Inc (NYSE:XOXO) is the most popular stock in this table. On the other hand Theravance Biopharma Inc (NASDAQ:TBPH) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Cliffs Natural Resources Inc (NYSE:CLF) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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