Is OneMain Holdings Inc (OMF) Going to Burn These Hedge Funds?

Seeing as OneMain Holdings Inc (NYSE:OMF) has faced a decline in interest from the aggregate hedge fund industry, it’s safe to say that there were a few fund managers who were dropping their entire stakes heading into Q4. At the top of the heap, James Dinan’s York Capital Management sold off the largest position of all the hedgies watched by Insider Monkey, totaling about $8.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund sold off about $7 million worth of shares. These transactions are important to note, as aggregate hedge fund interest was cut by 1 fund heading into Q4.

Let’s now review hedge fund activity in other stocks similar to OneMain Holdings Inc (NYSE:OMF). We will take a look at Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC), Gerdau SA (ADR) (NYSE:GGB), Valmont Industries, Inc. (NYSE:VMI), and Avis Budget Group Inc. (NASDAQ:CAR). This group of stocks’ market valuations are closest to OMF’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $386 million. That figure was $308 million in OMF’s case. Avis Budget Group Inc. (NASDAQ:CAR) is the most popular stock in this table. On the other hand Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC) is the least popular one with only 2 bullish hedge fund positions. OneMain Holdings Inc (NYSE:OMF) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CAR might be a better candidate to consider a long position in.

Disclosure: None