Hedge Funds Are Selling OmniAmerican Bancorp, Inc. (OABC)

OmniAmerican Bancorp, Inc. (NASDAQ:OABC) was in 5 hedge funds’ portfolio at the end of March. OABC investors should pay attention to a decrease in hedge fund sentiment lately. There were 6 hedge funds in our database with OABC positions at the end of the previous quarter.

In the 21st century investor’s toolkit, there are plenty of metrics market participants can use to monitor stocks. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the market by a significant margin (see just how much).

Equally as beneficial, positive insider trading activity is a second way to break down the investments you’re interested in. There are plenty of stimuli for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this method if you understand where to look (learn more here).

With all of this in mind, we’re going to take a gander at the key action surrounding OmniAmerican Bancorp, Inc. (NASDAQ:OABC).

How have hedgies been trading OmniAmerican Bancorp, Inc. (NASDAQ:OABC)?

In preparation for this quarter, a total of 5 of the hedge funds we track were bullish in this stock, a change of -17% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings meaningfully.

When looking at the hedgies we track, MFP Investors, managed by Michael Price, holds the biggest position in OmniAmerican Bancorp, Inc. (NASDAQ:OABC). MFP Investors has a $7.6 million position in the stock, comprising 1% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $4.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Neil Chriss’s Hutchin Hill Capital, D. E. Shaw’s D E Shaw and John Overdeck and David Siegel’s Two Sigma Advisors.

Since OmniAmerican Bancorp, Inc. (NASDAQ:OABC) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that decided to sell off their entire stakes heading into Q2. Interestingly, Howard Guberman’s Gruss Asset Management cut the largest stake of the 450+ funds we track, valued at about $1.4 million in stock. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds heading into Q2.

What have insiders been doing with OmniAmerican Bancorp, Inc. (NASDAQ:OABC)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past 180 days. Over the last half-year time period, OmniAmerican Bancorp, Inc. (NASDAQ:OABC) has experienced 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the returns exhibited by our research, retail investors should always pay attention to hedge fund and insider trading activity, and OmniAmerican Bancorp, Inc. (NASDAQ:OABC) is no exception.

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