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Is Vista Gold Corp. (NYSEAMEX:VGZ) a good bet right now? We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds' picks don't beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
Hedge fund interest in Vista Gold Corp. (NYSEAMEX:VGZ) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare VGZ to other stocks including Richardson Electronics, Ltd. (NASDAQ:RELL), Strattec Security Corp. (NASDAQ:STRT), and Natural Health Trends Corp. (NASDAQ:NHTC) to get a better sense of its popularity.
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
At the moment there are a large number of signals stock market investors can use to grade stocks. Two of the most underrated signals are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the elite money managers can trounce their index-focused peers by a very impressive amount (see the details here).
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Jim Simons of RENAISSANCE TECHNOLOGIES[/caption]
We're going to check out the latest hedge fund action encompassing Vista Gold Corp. (NYSEAMEX:VGZ).
What have hedge funds been doing with Vista Gold Corp. (NYSEAMEX:VGZ)?
At Q3's end, a total of 2 of the hedge funds tracked by Insider Monkey were long this stock, the same as one quarter earlier. On the other hand, there were a total of 2 hedge funds with a bullish position in VGZ a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Vista Gold Corp. (NYSEAMEX:VGZ) was held by Sun Valley Gold, which reported holding $14.1 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $0.1 million position.
Judging by the fact that Vista Gold Corp. (NYSEAMEX:VGZ) has witnessed declining sentiment from the aggregate hedge fund industry, it's easy to see that there is a sect of hedge funds who sold off their positions entirely by the end of the third quarter. At the top of the heap, Ken Griffin's Citadel Investment Group cut the biggest investment of the 750 funds tracked by Insider Monkey, worth about $0 million in stock, and Ken Griffin's Citadel Investment Group was right behind this move, as the fund dropped about $0 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).