In today’s marketplace, there are a multitude of metrics investors can use to watch publicly traded companies. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outpace the market by a healthy amount (see just how much).
Just as key, positive insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are plenty of reasons for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would buy. Various empirical studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Now, let’s take a glance at the recent action encompassing OfficeMax Inc (NYSE:OMX).
How are hedge funds trading OfficeMax Inc (NYSE:OMX)?
In preparation for this year, a total of 18 of the hedge funds we track held long positions in this stock, a change of 125% from the third quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially.
Of the funds we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in OfficeMax Inc (NYSE:OMX). Adage Capital Management has a $10 million position in the stock, comprising 0% of its 13F portfolio. Sitting at the No. 2 spot is CR Intrinsic Investors, managed by SAC Subsidiary, which held a $10 million position; 0% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies and Malcolm Fairbairn’s Ascend Capital.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the largest position in OfficeMax Inc (NYSE:OMX). Adage Capital Management had 10 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $8 million investment in the stock during the quarter. The other funds with new positions in the stock are Malcolm Fairbairn’s Ascend Capital, Robert B. Gillam’s McKinley Capital Management, and Israel Englander’s Millennium Management.
How are insiders trading OfficeMax Inc (NYSE:OMX)?
Insider buying is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time period, OfficeMax Inc (NYSE:OMX) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading activity, and OfficeMax Inc (NYSE:OMX) shareholders fit into this picture quite nicely.
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