We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of ONE Gas Inc (NYSE:OGS) based on that data.
Is ONE Gas Inc (NYSE:OGS) a buy right now? The smart money is buying. The number of long hedge fund bets improved by 3 recently. 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 Momo Inc (ADR) (NASDAQ:MOMO), Weibo Corp (ADR) (NASDAQ:WB), and Diamond Offshore Drilling Inc (NYSE:DO) to gather more data points.
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With all of this in mind, we’re going to take a peek at the latest action encompassing ONE Gas Inc (NYSE:OGS).
What does the smart money think about ONE Gas Inc (NYSE:OGS)?
At Q3’s end, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from the second quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Phill Gross and Robert Atchinson’s Adage Capital Management has the most valuable position in ONE Gas Inc (NYSE:OGS), worth close to $18.1 million, accounting for 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is D E Shaw, managed by D. E. Shaw, which holds a $7.9 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism consist of Cliff Asness’s AQR Capital Management, Joel Greenblatt’s Gotham Asset Management and Mario Gabelli’s GAMCO Investors.
As aggregate interest increased, key hedge funds have jumped into ONE Gas Inc (NYSE:OGS) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, initiated the most outsized position in ONE Gas Inc (NYSE:OGS). Adage Capital Management had $18.1 million invested in the company at the end of the quarter. Andre F. Perold’s HighVista Strategies also made a $3.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Matthew Hulsizer’s PEAK6 Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ONE Gas Inc (NYSE:OGS) but similarly valued. These stocks are Momo Inc (ADR) (NASDAQ:MOMO), Weibo Corp (ADR) (NASDAQ:WB), Diamond Offshore Drilling Inc (NYSE:DO), and IMAX Corporation (USA) (NYSE:IMAX). All of these stocks’ market caps are similar to OGS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MOMO | 5 | 85534 | -3 |
| WB | 5 | 7945 | -1 |
| DO | 26 | 131790 | 6 |
| IMAX | 20 | 136436 | -1 |
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $51 million in OGS’s case. Diamond Offshore Drilling Inc (NYSE:DO) is the most popular stock in this table. On the other hand Momo Inc (ADR) (NASDAQ:MOMO) is the least popular one with only 5 bullish hedge fund positions. ONE Gas Inc (NYSE:OGS) 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 DO might be a better candidate to consider a long position.