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Hedge Funds Aren’t Crazy About Owens-Illinois Inc (NYSE:OI) Anymore

Owens-Illinois Inc (NYSE:OI) was in 27 hedge funds’ portfolio at the end of the fourth quarter of 2012. OI has seen a decrease in hedge fund sentiment in recent months. There were 27 hedge funds in our database with OI positions at the end of the previous quarter.

According to most market participants, hedge funds are assumed to be unimportant, outdated financial tools of yesteryear. While there are over 8000 funds with their doors open at the moment, we at Insider Monkey look at the elite of this group, about 450 funds. It is estimated that this group has its hands on most of all hedge funds’ total capital, and by watching their best stock picks, we have uncovered a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Owens-Illinois Inc (NYSE:OI)Just as beneficial, positive insider trading sentiment is another way to parse down the world of equities. Just as you’d expect, there are lots of stimuli for an insider to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if shareholders know where to look (learn more here).

Consequently, we’re going to take a glance at the key action regarding Owens-Illinois Inc (NYSE:OI).

What does the smart money think about Owens-Illinois Inc (NYSE:OI)?

At the end of the fourth quarter, a total of 27 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes substantially.

When looking at the hedgies we track, Atlantic Investment Management, managed by Alexander Roepers, holds the most valuable position in Owens-Illinois Inc (NYSE:OI). Atlantic Investment Management has a $237 million billion position in the stock, comprising 19.4% of its 13F portfolio. The second largest stake is held by Farallon Capital, managed by Thomas Steyer, which held a $129 million position; the fund has 3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Ricky Sandler’s Eminence Capital and Cliff Asness’s AQR Capital Management.

Due to the fact that Owens-Illinois Inc (NYSE:OI) has experienced bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of money managers that elected to cut their full holdings heading into 2013. It’s worth mentioning that Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC dropped the largest stake of the “upper crust” of funds we track, comprising close to $111 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund said goodbye to about $5 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Owens-Illinois Inc (NYSE:OI)?

Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, Owens-Illinois Inc (NYSE:OI) has seen 2 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s strategies, retail investors must always pay attention to hedge fund and insider trading activity, and Owens-Illinois Inc (NYSE:OI) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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