Hedge Funds Are Selling Office Depot Inc (ODP)

Page 1 of 2

Is it smart to be bullish on Office Depot Inc (NYSE:ODP)?

In today’s marketplace, there are many gauges investors can use to track publicly traded companies. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can trounce the broader indices by a healthy amount (see just how much).

Equally as crucial, bullish insider trading activity is another way to look at the financial markets. As the old adage goes: there are plenty of incentives for an insider to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).

Thus, it’s important to study the recent info for Office Depot Inc (NYSE:ODP).

What have hedge funds been doing with Office Depot Inc (NYSE:ODP)?

In preparation for the third quarter, a total of 27 of the hedge funds we track were bullish in this stock, a change of -4% from the first quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.

Office Depot Inc (NYSE:ODP)When using filings from the hedgies we track, Jeffrey Smith’s Starboard Value LP had the most valuable position in Office Depot Inc (NYSE:ODP), worth close to $162.9 million, comprising 11.4% of its total 13F portfolio. On Starboard Value LP’s heels is TIG Advisors, managed by Carl Tiedemann and Michael Tiedemann, which held a $51.7 million position; 7.4% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include D. E. Shaw’s D E Shaw, Barry Rosenstein’s JANA Partners and David Costen Haley’s HBK Investments.

Because Office Depot Inc (NYSE:ODP) has witnessed declining interest from the smart money’s best and brightest, it’s safe to say that there is a sect of hedgies that elected to cut their full holdings at the end of the second quarter. Intriguingly, Brian Taylor’s Pine River Capital Management said goodbye to the largest investment of the 450+ funds we monitor, comprising close to $8 million in stock. John Arnold’s fund, Centaurus Advisors, also sold off its stock, about $3.2 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 1 funds at the end of the second quarter.

How have insiders been trading Office Depot Inc (NYSE:ODP)?

Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time period, Office Depot Inc (NYSE:ODP) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Office Depot Inc (NYSE:ODP). These stocks are Barnes & Noble, Inc. (NYSE:BKS), Finish Line Inc (NASDAQ:FINL), Francesca’s Holdings Corp (NASDAQ:FRAN), OfficeMax Inc (NYSE:OMX), and EZCORP Inc (NASDAQ:EZPW). This group of stocks are the members of the specialty retail, other industry and their market caps are closest to ODP’s market cap.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!