Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the fourth quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Omega Healthcare Investors Inc (NYSE:OHI) based on that data.
Is Omega Healthcare Investors Inc (NYSE:OHI) a good stock to buy now? The best stock pickers were becoming hopeful. The number of bullish hedge fund bets went up by 10 recently. Omega Healthcare Investors Inc (NYSE:OHI) was in 25 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that OHI isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To most stock holders, hedge funds are seen as worthless, old investment tools of years past. While there are more than 8000 funds trading at present, Our researchers choose to focus on the moguls of this club, around 850 funds. These hedge fund managers oversee the majority of the smart money’s total capital, and by following their unrivaled stock picks, Insider Monkey has unearthed several investment strategies that have historically outperformed Mr. Market. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Paul Tudor Jones of Tudor Investment Corp
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Do Hedge Funds Think OHI Is A Good Stock To Buy Now?
At Q1’s end, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of 67% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards OHI over the last 23 quarters. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
More specifically, D E Shaw was the largest shareholder of Omega Healthcare Investors Inc (NYSE:OHI), with a stake worth $65.4 million reported as of the end of March. Trailing D E Shaw was Citadel Investment Group, which amassed a stake valued at $31.2 million. Millennium Management, Balyasny Asset Management, and Renaissance Technologies were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position LDR Capital allocated the biggest weight to Omega Healthcare Investors Inc (NYSE:OHI), around 0.39% of its 13F portfolio. Waterfront Capital Partners is also relatively very bullish on the stock, setting aside 0.34 percent of its 13F equity portfolio to OHI.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the largest position in Omega Healthcare Investors Inc (NYSE:OHI). Balyasny Asset Management had $17.3 million invested in the company at the end of the quarter. Eduardo Abush’s Waterfront Capital Partners also initiated a $3.8 million position during the quarter. The other funds with brand new OHI positions are Michael Gelband’s ExodusPoint Capital, Paul Tudor Jones’s Tudor Investment Corp, and Greg Eisner’s Engineers Gate Manager.
Let’s check out hedge fund activity in other stocks similar to Omega Healthcare Investors Inc (NYSE:OHI). We will take a look at The New York Times Company (NYSE:NYT), Ciena Corporation (NYSE:CIEN), US Foods Holding Corp. (NYSE:USFD), Marathon Oil Corporation (NYSE:MRO), Kinross Gold Corporation (NYSE:KGC), Gold Fields Limited (NYSE:GFI), and Hyatt Hotels Corporation (NYSE:H). This group of stocks’ market valuations resemble OHI’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NYT | 48 | 2399824 | -2 |
| CIEN | 27 | 327611 | 3 |
| USFD | 40 | 1489049 | -4 |
| MRO | 29 | 423870 | 3 |
| KGC | 27 | 444920 | -9 |
| GFI | 15 | 323946 | 0 |
| H | 23 | 666787 | -4 |
| Average | 29.9 | 868001 | -1.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 29.9 hedge funds with bullish positions and the average amount invested in these stocks was $868 million. That figure was $191 million in OHI’s case. The New York Times Company (NYSE:NYT) is the most popular stock in this table. On the other hand Gold Fields Limited (NYSE:GFI) is the least popular one with only 15 bullish hedge fund positions. Omega Healthcare Investors Inc (NYSE:OHI) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for OHI is 55.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through July 9th and surpassed the market again by 6.7 percentage points. Unfortunately OHI wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); OHI investors were disappointed as the stock returned 3.3% since the end of March (through 7/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow Omega Healthcare Investors Inc (NYSE:OHI)
Follow Omega Healthcare Investors Inc (NYSE:OHI)
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Disclosure: None. This article was originally published at Insider Monkey.
