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What Do Institutional Holdings in Cliffs Natural Resources Suggest?

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Institutional and fund activity

The level of institutional and fund holdings suggests the confidence level that sophisticated market participants like these institutions have in a stock. Typically, higher institutional holdings indicate a favorable opinion about a stock.

At the end of 3Q16, institutional ownership in Cliffs Natural Resources (CLF) totaled ~61.7%. CLF’s peers (SLX) U.S. Steel (X), AK Steel (AKS), and Steel Dynamics (STLD) have institutional ownership levels of ~77.8%, ~66.7%, and ~82.2%, respectively.

According to Insider Monkey, at the end of 3Q16, 23 hedge funds were bullish on Cliffs Natural Resources (CLF). This is 10% higher than the same metric at the end of 2Q16.

According to Whalewisdom, Arrowsteel Capital held the highest position in Cliffs Natural Resources—$91.3 million—at the end of the third quarter, comprising 0.30% of its portfolio. This position is higher than the 0.23% level that CLF formed at the end of 2Q16.

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Vanguard Group has the second-largest percentage ownership in Cliffs Natural Resources at ~7.2%, worth $77.4 million. Renaissance Technologies Llc holds third place in terms of market value of CLF stock held at the end of 3Q16. It has 0.12% of its portfolio invested in the stock, comprising $66.4 million.

Positions initiated during 3Q16

A total of 47 funds created a position in Cliffs Natural Resources (CLF), as opposed to 26 funds that closed out their positions in the stock. There was a 16.6% change in the institutional ownership in Cliffs Natural Resources at the end of 3Q16 compared to the end of 2Q16.

Omega Advisors, which is managed by Leon Cooperman, initiated a $6.4 million position in Cliffs Natural Resources stock in 3Q16. This implies buying 1.1 million shares in the company.

Master Capital Management also initiated a $5.9 million position in Cliffs Natural Resources during 3Q16. Two Sigma Investments, Goldentree Asset Management, and CIBC World Markets were among other funds to initiate positions in CLF.

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