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 Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

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!