Ocwen Financial Corporation (OCN): Insiders Aren’t Crazy About It But Hedge Funds Love It

Page 1 of 2

In the eyes of many investors, hedge funds are assumed to be useless, old financial tools of a period lost to current times. Although there are more than 8,000 hedge funds trading in present day, this site focuses on the crème de la crème of this club, about 525 funds. It is widely held that this group controls the majority of the smart money’s total assets, and by keeping an eye on their highest performing equity investments, we’ve brought to light a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Equally as crucial, bullish insider trading sentiment is another way to look at the financial markets. There are a number of reasons for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).

Now that that’s out of the way, it’s important to study the newest info surrounding Ocwen Financial Corporation (NYSE:OCN).

How have hedgies been trading Ocwen Financial Corporation (NYSE:OCN)?

Heading into Q3, a total of 41 of the hedge funds we track were long in this stock, a change of 11% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings considerably.

Ocwen Financial Corporation (NYSE:OCN)According to our 13F database, Stephen Mandel’s Lone Pine Capital had the largest position in Ocwen Financial Corporation (NYSE:OCN), worth close to $224.6 million, comprising 1.1% of its total 13F portfolio. On Lone Pine Capital’s heels is Pine River Capital Management, managed by Brian Taylor, which held a $151.2 million position; 2.3% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Peter Adam Hochfelder’s Brahman Capital, Matthew Iorio’s White Elm Capital and Paul Ruddock and Steve Heinz’s Lansdowne Partners.

With a general bullishness amongst the titans, certain money managers were leading the bulls’ herd. Lone Pine Capital, managed by Stephen Mandel, created the biggest position in Ocwen Financial Corporation (NYSE:OCN). Lone Pine Capital had 224.6 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also initiated a $151.2 million position during the quarter. The other funds with brand new OCN positions are Peter Adam Hochfelder’s Brahman Capital, Matthew Iorio’s White Elm Capital, and Paul Ruddock and Steve Heinz’s Lansdowne Partners.

What have insiders been doing with Ocwen Financial Corporation (NYSE:OCN)?

Legal insider trading, particularly when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time period, Ocwen Financial Corporation (NYSE:OCN) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Ocwen Financial Corporation (NYSE:OCN). These stocks are Investors Bancorp, Inc. (NASDAQ:ISBC), First Niagara Financial Group Inc. (NASDAQ:FNFG), New York Community Bancorp, Inc. (NYSE:NYCB), People’s United Financial, Inc. (NASDAQ:PBCT), and Hudson City Bancorp, Inc. (NASDAQ:HCBK). This group of stocks are the members of the savings & loans industry and their market caps are similar to OCN’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!