Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Owens & Minor, Inc. (NYSE:OMI) shareholders have witnessed unchanged hedge fund sentiment during the third quarter. At the end of this article we will also compare OMI to other stocks including Cirrus Logic, Inc. (NASDAQ:CRUS), Cousins Properties Inc (NYSE:CUZ), and Moog Inc (NYSE:MOG) to get a better sense of its popularity.
What does the smart money think about Owens & Minor, Inc. (NYSE:OMI)?
At the end of the third quarter, a total of 18 of the hedge funds tracked by Insider Monkey were long in this stock, a change of 0% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Royce & Associates, managed by Chuck Royce, holds the biggest position in Owens & Minor, Inc. (NYSE:OMI). Royce & Associates has a $43.8 million position in the stock, comprising 0.2% of its 13F portfolio. The second most bullish hedge fund manager is Gotham Asset Management, managed by Joel Greenblatt, which held a $36.8 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining members of the smart money with similar optimism include Richard S. Pzena’s Pzena Investment Management, David Dreman’s Dreman Value Management and Paul Tudor Jones’s Tudor Investment Corp.
Due to the fact that Owens & Minor, Inc. (NYSE:OMI) has witnessed stagnant interest from hedge fund managers, it’s safe to say that there may be a sect of hedgies that elected to cut their entire stakes last quarter. Interestingly, D. E. Shaw’s D E Shaw cut the biggest stake of all the hedgies watched by Insider Monkey, valued at about $1 million in stock. Mike Vranos’s fund, Ellington, also dropped its stock, about $0.6 million worth.
Let’s now go over hedge fund activity in other stocks similar to Owens & Minor, Inc. (NYSE:OMI). These stocks are Cirrus Logic, Inc. (NASDAQ:CRUS), Cousins Properties Inc (NYSE:CUZ), Moog Inc (NYSE:MOG), and TerraForm Power Inc (NASDAQ:TERP). All of these stocks’ market caps resemble OMI’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 23.75 hedge funds with bullish positions and the average amount invested in these stocks was $214 million. TerraForm Power Inc (NASDAQ:TERP) is the most popular stock in this table. On the other hand Cousins Properties Inc (NYSE:CUZ) is the least popular one with only 17 bullish hedge fund positions. Owens & Minor, Inc. (NYSE:OMI) 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 TERP might be a better candidate to consider a long position.