Is Olin Corporation (NYSE:OLN) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Olin Corporation (NYSE:OLN) has seen an increase in hedge fund sentiment lately. Olin Corporation (NYSE:OLN) was in 43 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 37. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that OLN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Richard S. Pzena of Pzena Investment Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s view the fresh hedge fund action regarding Olin Corporation (NYSE:OLN).
Do Hedge Funds Think OLN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 43 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 16% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards OLN over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Sachem Head Capital was the largest shareholder of Olin Corporation (NYSE:OLN), with a stake worth $576.6 million reported as of the end of September. Trailing Sachem Head Capital was Pzena Investment Management, which amassed a stake valued at $163.7 million. Millennium Management, Renaissance Technologies, and Adage Capital Management 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 Sachem Head Capital allocated the biggest weight to Olin Corporation (NYSE:OLN), around 14.22% of its 13F portfolio. Mountaineer Partners Management is also relatively very bullish on the stock, earmarking 7.47 percent of its 13F equity portfolio to OLN.
As one would reasonably expect, some big names were breaking ground themselves. Appian Way Asset Management, managed by Andrew Byington, created the largest position in Olin Corporation (NYSE:OLN). Appian Way Asset Management had $10.2 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $8.8 million position during the quarter. The following funds were also among the new OLN investors: John Bader’s Halcyon Asset Management, Andrew Sandler’s Sandler Capital Management, and Mike Masters’s Masters Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Olin Corporation (NYSE:OLN) but similarly valued. We will take a look at EQT Corporation (NYSE:EQT), Globus Medical Inc (NYSE:GMED), US Foods Holding Corp. (NYSE:USFD), AerCap Holdings N.V. (NYSE:AER), Kilroy Realty Corp (NYSE:KRC), Apartment Income REIT Corp. (NYSE:AIRC), and Lincoln Electric Holdings, Inc. (NASDAQ:LECO). This group of stocks’ market values match OLN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EQT | 57 | 838226 | 14 |
| GMED | 37 | 266753 | 2 |
| USFD | 29 | 1071095 | -6 |
| AER | 42 | 1448787 | -3 |
| KRC | 24 | 422839 | -2 |
| AIRC | 17 | 270935 | 3 |
| LECO | 21 | 288792 | 1 |
| Average | 32.4 | 658204 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 32.4 hedge funds with bullish positions and the average amount invested in these stocks was $658 million. That figure was $1170 million in OLN’s case. EQT Corporation (NYSE:EQT) is the most popular stock in this table. On the other hand Apartment Income REIT Corp. (NYSE:AIRC) is the least popular one with only 17 bullish hedge fund positions. Olin Corporation (NYSE:OLN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for OLN is 72.5. 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. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on OLN as the stock returned 13% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
