You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
ORIX Corporation (ADR) (NYSE:IX) investors should be aware of an increase in activity from the world’s largest hedge funds recently. There were 4 hedge funds in our database with IX positions at the end of the previous quarter. At the end of this article we will also compare IX to other stocks including American Airlines Group Inc (NASDAQ:AAL), Energy Transfer Partners LP (NYSE:ETP), and Coca-Cola Enterprises Inc (NYSE:CCE) to get a better sense of its popularity.
Follow O R I X Corp (NYSE:IX)
Follow O R I X Corp (NYSE:IX)
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Now, we’re going to go over the new action surrounding ORIX Corporation (ADR) (NYSE:IX).
What have hedge funds been doing with ORIX Corporation (ADR) (NYSE:IX)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the previous quarter. On the other hand, there were a total of 2 hedge funds with a bullish position in IX at the beginning of this year. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Thomas Bailard’s Bailard Inc has the largest position in ORIX Corporation (ADR) (NYSE:IX), worth close to $2.9 million, accounting for 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons’ Renaissance Technologies, one of the largest hedge funds in the world, with a $1.7 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Some other peers that are bullish include D. E. Shaw’s D E Shaw, Ernest Chow and Jonathan Howe’s Sensato Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that Sensato Capital Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Sensato Capital Management also initiated a $0.4 million position during the quarter.
Let’s go over hedge fund activity in other stocks similar to ORIX Corporation (ADR) (NYSE:IX). These stocks are American Airlines Group Inc (NASDAQ:AAL), Energy Transfer Partners LP (NYSE:ETP), Coca-Cola Enterprises Inc (NYSE:CCE), and Nielsen Hldg NV (NYSE:NLSN). This group of stocks’ market caps resemble IX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AAL | 50 | 2028200 | -6 |
| ETP | 22 | 956722 | 0 |
| CCE | 32 | 978088 | -8 |
| NLSN | 26 | 436451 | -3 |
As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1100 million. That figure was $6 million in IX’s case. American Airlines Group Inc (NASDAQ:AAL) is the most popular stock in this table. On the other hand Energy Transfer Partners LP (NYSE:ETP) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks ORIX Corporation (ADR) (NYSE:IX) is even less popular than ETP. 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
