World-class money managers like Bill Ackman and Barry Rosenstein only invest their wealthy clients’ money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It’s not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It’s also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
Oceaneering International (NYSE:OII) investors should pay attention to an increase in support from the world’s most elite money managers of late. Oceaneering International (NYSE:OII) was in 28 hedge funds’ portfolios at the end of September. There were 27 hedge funds in our database with Oceaneering International (NYSE:OII) holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Vedanta Ltd (ADR) (NYSE:VEDL), Erie Indemnity Company (NASDAQ:ERIE), and Sociedad Quimica y Minera de Chile (ADR) (NYSE:SQM) to gather more data points.
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Today, there are a multitude of formulas market participants use to assess stocks. A couple of the most innovative formulas are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can outperform the broader indices by a healthy margin (see the details here).
Keeping this in mind, let’s review the latest action encompassing Oceaneering International (NYSE:OII).
How are hedge funds trading Oceaneering International (NYSE:OII)?
At the end of the third quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 4% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund and institutional investor database, Israel Englander’s Millennium Management has the most valuable position in Oceaneering International (NYSE:OII), worth close to $58.7 million, corresponding to 0.1% of its total 13F portfolio. On Millennium Management’s heels is Ken Fisher of Fisher Asset Management, with a $27.4 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that are bullish encompass John Overdeck and David Siegel’s Two Sigma Advisors, Brian Taylor’s Pine River Capital Management, and Mario Gabelli’s GAMCO Investors.
As industrywide interest jumped, specific money managers were breaking ground themselves. Sheffield Asset Management, managed by Craig C. Albert, initiated the most valuable position in Oceaneering International (NYSE:OII). Sheffield Asset Management had $5.6 million invested in the company at the end of the quarter. Kurt Billick’s Bocage Capital also made a $4.8 million investment in the stock during the quarter. The other funds with new positions in the stock are GLG Partners, Kenneth Tropin’s Graham Capital Management, and Anand Parekh’s Alyeska Investment Group.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Oceaneering International (NYSE:OII) but similarly valued. We will take a look at Vedanta Ltd (ADR) (NYSE:VEDL), Erie Indemnity Company (NASDAQ:ERIE), Sociedad Quimica y Minera de Chile (ADR) (NYSE:SQM), and Bemis Company, Inc. (NYSE:BMS). This group of stocks’ market caps matches Oceaneering International (NYSE:OII)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VEDL | 8 | 9625 | 5 |
| ERIE | 10 | 52490 | 2 |
| SQM | 9 | 54299 | -5 |
| BMS | 25 | 198698 | 1 |
As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $183 million in Oceaneering International (NYSE:OII)’s case. Bemis Company, Inc. (NYSE:BMS) is the most popular stock in this table. On the other hand, Vedanta Ltd (ADR) (NYSE:VEDL) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks, Oceaneering International (NYSE:OII) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
