What Smart Money Thinks of Pretium Resources Inc (PVG)?

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Consequently, key money managers have been driving this bullishness. Citadel Investment Group, led by Ken Griffin, created the largest call position in Pretium Resources Inc (NYSE:PVG). Citadel Investment Group had $1.3 million invested in the company at the end of the quarter. Philippe Jabre’s Jabre Capital Partners also initiated a $0.9 million position during the quarter. The following funds were also among the new PVG investors: David Costen Haley’s HBK Investments and Robert B. Gillam’s McKinley Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Pretium Resources Inc (NYSE:PVG) but similarly valued. These stocks are DiamondRock Hospitality Company (NYSE:DRH), KapStone Paper and Packaging Corp. (NYSE:KS), Applied Industrial Technologies (NYSE:AIT), and IAMGOLD Corporation (USA) (NYSE:IAG). All of these stocks’ market caps are closest to PVG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DRH 12 49550 -2
KS 18 164051 -3
AIT 15 70956 -3
IAG 17 154807 7

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $110 million. That figure was $141 million in PVG’s case. KapStone Paper and Packaging Corp. (NYSE:KS) is the most popular stock in this table. On the other hand DiamondRock Hospitality Company (NYSE:DRH) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Pretium Resources Inc (NYSE:PVG) registered the same number of bullish investors as DRH. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None




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