Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of OneMain Holdings Inc (NYSE:OMF) based on that data.
OneMain Holdings Inc (NYSE:OMF) has seen a decrease in activity from the world’s largest hedge funds 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 decline in popularity but it may still be more popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Dicks Sporting Goods Inc (NYSE:DKS), Packaging Corp Of America (NYSE:PKG), and Rollins, Inc. (NYSE:ROL) to gather more data points.
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Now, let’s analyze the fresh action encompassing OneMain Holdings Inc (NYSE:OMF).
Hedge fund activity in OneMain Holdings Inc (NYSE:OMF)
At Q3’s end, a total of 32 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from the second quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Michael Novogratz’s Fortress Investment Group has the number one position in OneMain Holdings Inc (NYSE:OMF), worth close to $3.2107 billion, corresponding to 49.1% of its total 13F portfolio. On Fortress Investment Group’s heels is Omega Advisors, managed by Leon Cooperman, which holds a $114 million position; 2.3% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors with similar optimism comprise Michael Barnes and Arif Inayatullah’s Tricadia Capital Management, Martin Hughes’s Toscafund Asset Management and James Dinan’s York Capital Management.
Judging by the fact that OneMain Holdings Inc (NYSE:OMF) has experienced a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedge funds that decided to sell off their full holdings last quarter. At the top of the heap, Emanuel J. Friedman’s EJF Capital said goodbye to the biggest investment of the 700 funds monitored by Insider Monkey, comprising close to $31.2 million in stock, and Christopher A. Winham’s Tide Point Capital was right behind this move, as the fund cut about $23 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds last quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as OneMain Holdings Inc (NYSE:OMF) but similarly valued. We will take a look at Dicks Sporting Goods Inc (NYSE:DKS), Packaging Corp Of America (NYSE:PKG), Rollins, Inc. (NYSE:ROL), and Antero Resources Corp (NYSE:AR). All of these stocks’ market caps match OMF’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DKS | 26 | 340088 | -6 |
| PKG | 19 | 185553 | -12 |
| ROL | 22 | 347022 | 9 |
| AR | 24 | 881365 | -2 |
As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $439 million. That figure was $3687 million in OMF’s case. Dicks Sporting Goods Inc (NYSE:DKS) is the most popular stock in this table. On the other hand Packaging Corp Of America (NYSE:PKG) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks OneMain Holdings Inc (NYSE:OMF) 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.