Is OM Group, Inc. (OMG) A Good Stock To Buy?

Due to the fact that OM Group, Inc. (NYSE:OMG) has faced a declination in interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of funds who were dropping their full holdings last quarter. Interestingly, Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group said goodbye to the biggest position of all the hedgies followed by Insider Monkey, valued at about $48.8 million in stock. Douglas Hirsch’s fund, Seneca Capital, also said goodbye to its stock, about $21.8 million worth. These moves are important to note, as aggregate hedge fund interest fell by 10 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as OM Group, Inc. (NYSE:OMG) but similarly valued. We will take a look at CSG Systems International, Inc. (NASDAQ:CSGS), FelCor Lodging Trust Incorporated (NYSE:FCH), Brady Corp (NYSE:BRC), and Summit Hotel Properties Inc (NYSE:INN). This group of stocks’ market values resemble OMG’s market value.

As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $163 million in OMG’s case. CSG Systems International, Inc. (NASDAQ:CSGS) is the most popular stock in this table. On the other hand Summit Hotel Properties Inc (NYSE:INN) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks OM Group, Inc. (NYSE:OMG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.