The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards OM Asset Management PLC (NYSE:OMAM).
OM Asset Management PLC (NYSE:OMAM) shareholders have witnessed an increase in hedge fund interest recently. There were 12 funds in our database long OMAM at the end of September, compared to 11 funds at the end of June. At the end of this article we will also compare OMAM to other stocks including ExlService Holdings, Inc. (NASDAQ:EXLS), USANA Health Sciences, Inc. (NYSE:USNA), and Core-Mark Holding Company, Inc. (NASDAQ:CORE) to get a better sense of its popularity.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, let’s take a gander at the new action surrounding OM Asset Management PLC (NYSE:OMAM).
What does the smart money think about OM Asset Management PLC (NYSE:OMAM)?
Heading into the fourth quarter of 2016, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, which represents an increase of 9% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards OMAM over the last five quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, John Brennan’s Sirios Capital Management has the biggest position in OM Asset Management PLC (NYSE:OMAM), worth close to $24.7 million, accounting for 1.4% of its total 13F portfolio. Sitting at the No. 2 spot is Joe Huber of Huber Capital Management, with a $14 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Millennium Management, one of the 10 largest hedge funds in the world, Nathaniel August’s Mangrove Partners and Ken Griffin’s Citadel Investment Group. We should note that Mangrove Partners 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 one would reasonably expect, key money managers have jumped into OM Asset Management PLC (NYSE:OMAM) headfirst. Tudor Investment Corp, led by Paul Tudor Jones, initiated the most valuable position in OM Asset Management PLC (NYSE:OMAM). Tudor Investment Corp had $0.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $0.3 million position during the quarter. The only other fund with a brand new OMAM position is John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s now take a look at hedge fund activity in other stocks similar to OM Asset Management PLC (NYSE:OMAM). These stocks are ExlService Holdings, Inc. (NASDAQ:EXLS), USANA Health Sciences, Inc. (NYSE:USNA), Core-Mark Holding Company, Inc. (NASDAQ:CORE), and Northwest Natural Gas Co (NYSE:NWN). All of these stocks’ market caps are similar to OMAM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EXLS | 8 | 56257 | -5 |
| USNA | 14 | 142282 | 1 |
| CORE | 14 | 57732 | -3 |
| NWN | 12 | 53058 | -2 |
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $64 million in OMAM’s case. USANA Health Sciences, Inc. (NYSE:USNA) is the most popular stock in this table. On the other hand ExlService Holdings, Inc. (NASDAQ:EXLS) is the least popular one with only eight bullish hedge fund positions. OM Asset Management PLC (NYSE:OMAM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard USANA Health Sciences might be a better candidate to consider taking a long position in.
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