Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. In this article we are going to take a look at smart money sentiment towards OM Group, Inc. (NYSE:OMG).
Is OM Group, Inc. a cheap stock to buy now? Investors who are in the know are getting less optimistic. The number of bullish hedge fund positions shrunk by 10 in recent months. 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 CSG Systems International, Inc. (NASDAQ:CSGS), FelCor Lodging Trust Incorporated (NYSE:FCH), and Brady Corp (NYSE:BRC) to gather more data points.
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Follow Om Group Inc (NYSE:OMG)
In the 21st century investor’s toolkit there are many tools market participants employ to assess their holdings. A pair of the most useful tools are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the top investment managers can outclass the broader indices by a healthy margin (see the details here).
Now, we’re going to check out the fresh action encompassing OM Group, Inc. (NYSE:OMG).
Hedge fund activity in OM Group, Inc. (NYSE:OMG)
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -29% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Alpine Associates, managed by Robert Emil Zoellner, holds the largest position in OM Group, Inc. (NYSE:OMG). Alpine Associates has a $37.7 million position in the stock, comprising 1.5% of its 13F portfolio. Sitting at the No. 2 spot is Glazer Capital, led by Paul Glazer, holding a $35.6 million position; 4.4% of its 13F portfolio is allocated to the company. Some other members of the smart money that hold long positions consist of Matthew Halbower’s Pentwater Capital Management, Gordy Holterman and Derek Dunn’s Overland Advisors and D E Shaw.
Due to the fact that OM Group, Inc. (NYSE:OMG) has faced a declination in interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of funds who were dropping their full holdings last quarter. Interestingly, Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group said goodbye to the biggest position of all the hedgies followed by Insider Monkey, valued at about $48.8 million in stock. Douglas Hirsch’s fund, Seneca Capital, also said goodbye to its stock, about $21.8 million worth. These moves are important to note, as aggregate hedge fund interest fell by 10 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as OM Group, Inc. (NYSE:OMG) but similarly valued. We will take a look at CSG Systems International, Inc. (NASDAQ:CSGS), FelCor Lodging Trust Incorporated (NYSE:FCH), Brady Corp (NYSE:BRC), and Summit Hotel Properties Inc (NYSE:INN). This group of stocks’ market values resemble OMG’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CSGS | 22 | 145892 | 1 |
| FCH | 22 | 102418 | -2 |
| BRC | 10 | 154092 | 0 |
| INN | 8 | 41941 | -2 |
As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $163 million in OMG’s case. CSG Systems International, Inc. (NASDAQ:CSGS) is the most popular stock in this table. On the other hand Summit Hotel Properties Inc (NYSE:INN) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks OM Group, Inc. (NYSE:OMG) 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.
