Is Oaktree Capital Group LLC (OAK) A Good Stock To Buy?

As aggregate interest increased, key money managers were leading the bulls’ herd. Israel Englander’s Millennium Management assembled the most valuable position in Oaktree Capital Group LLC (NYSE:OAK). Millennium Management had $2.7 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $1.9 million investment in the stock during the quarter. The following funds were also among the new OAK investors: Dmitry Balyasny’s Balyasny Asset Management, Matthew Hulsizer’s PEAK6 Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Oaktree Capital Group LLC (NYSE:OAK) but similarly valued. We will take a look at NVR, Inc. (NYSE:NVR), Apartment Investment and Management Co. (NYSE:AIV), American Campus Communities, Inc. (NYSE:ACC), and NetApp Inc. (NASDAQ:NTAP). This group of stocks’ market caps resemble OAK’s market cap.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $321 million. That figure was $131 million in OAK’s case. NetApp Inc. (NASDAQ:NTAP) is the most popular stock in this table. On the other hand Apartment Investment and Management Co. (NYSE:AIV) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Oaktree Capital Group LLC (NYSE:OAK) is even less popular than AIV. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None