Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. These stocks have been on a tear since the end of June, outperforming large-cap index funds by more than 10 percentage points. That’s why we pay special attention to hedge fund activity in these stocks.
Hedge fund interest in Oppenheimer Holdings Inc. (USA) (NYSE:OPY) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare OPY to other stocks including UFP Technologies, Inc. (NASDAQ:UFPT), Egalet Corp (NASDAQ:EGLT), and PharmAthene, Inc. (NYSEAMEX:PIP) to get a better sense of its popularity.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
With all of this in mind, we’re going to take a look at the recent action encompassing Oppenheimer Holdings Inc. (USA) (NYSE:OPY).
Hedge fund activity in Oppenheimer Holdings Inc. (USA) (NYSE:OPY)
Heading into the fourth quarter of 2016, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards OPY over the last 5 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Private Capital Management, led by Gregg J. Powers, holds the most valuable position in Oppenheimer Holdings Inc. (USA) (NYSE:OPY). Private Capital Management has a $6.1 million position in the stock, comprising 0.9% of its 13F portfolio. The second largest stake is held by Paul J. Isaac of Arbiter Partners Capital Management, with a $2.2 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish comprise Chuck Royce’s Royce & Associates, Jeffrey Bronchick’s Cove Street Capital and Brian Gaines’ Springhouse Capital Management. We should note that Arbiter Partners Capital Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.