Olin Corporation (NYSE:OLN) shareholders have witnessed an increase in activity from the world’s largest hedge funds of late.
In today’s marketplace, there are plenty of methods investors can use to monitor Mr. Market. A duo of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can beat the broader indices by a superb margin (see just how much).
Equally as key, optimistic insider trading sentiment is another way to break down the investments you’re interested in. Just as you’d expect, there are many stimuli for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this strategy if “monkeys” understand what to do (learn more here).
Consequently, it’s important to take a gander at the latest action regarding Olin Corporation (NYSE:OLN).
Hedge fund activity in Olin Corporation (NYSE:OLN)
Heading into 2013, a total of 14 of the hedge funds we track were long in this stock, a change of 17% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Dreman Value Management, managed by David Dreman, holds the biggest position in Olin Corporation (NYSE:OLN). Dreman Value Management has a $30 million position in the stock, comprising 0.9% of its 13F portfolio. The second largest stake is held by Millennium Management, managed by Israel Englander, which held a $3 million position; the fund has 0% of its 13F portfolio invested in the stock. Other peers with similar optimism include Mario Gabelli’s GAMCO Investors, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Magnetar Capital, managed by Alec Litowitz and Ross Laser, initiated the most valuable position in Olin Corporation (NYSE:OLN). Magnetar Capital had 1 million invested in the company at the end of the quarter. Ken Gray and Steve Walsh’s Bryn Mawr Capital also initiated a $0 million position during the quarter. The following funds were also among the new OLN investors: Steven Cohen’s SAC Capital Advisors and John Overdeck and David Siegel’s Two Sigma Advisors.
What have insiders been doing with Olin Corporation (NYSE:OLN)?
Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time period, Olin Corporation (NYSE:OLN) has experienced 1 unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Olin Corporation (NYSE:OLN). These stocks are Kronos Worldwide, Inc. (NYSE:KRO), Cabot Corp (NYSE:CBT), Chemtura Corp (NYSE:CHMT), Sensient Technologies Corporation (NYSE:SXT), and HB Fuller Co (NYSE:FUL). All of these stocks are in the specialty chemicals industry and their market caps resemble OLN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Kronos Worldwide, Inc. (NYSE:KRO) | 4 | 2 | 1 |
| Cabot Corp (NYSE:CBT) | 13 | 0 | 2 |
| Chemtura Corp (NYSE:CHMT) | 25 | 2 | 0 |
| Sensient Technologies Corporation (NYSE:SXT) | 10 | 0 | 4 |
| HB Fuller Co (NYSE:FUL) | 9 | 1 | 4 |
With the returns shown by Insider Monkey’s tactics, everyday investors should always watch hedge fund and insider trading sentiment, and Olin Corporation (NYSE:OLN) is no exception.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.
