OM Group, Inc. (OMG): Hedge Funds Aren’t Crazy About It, Insider Sentiment Unchanged

Page 1 of 2

To many investors, hedge funds are perceived as overrated, outdated investment vehicles of an era lost to time. Although there are more than 8,000 hedge funds trading currently, Insider Monkey looks at the elite of this group, about 525 funds. It is assumed that this group oversees the majority of the hedge fund industry’s total capital, and by monitoring their best equity investments, we’ve identified a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Just as necessary, optimistic insider trading activity is another way to analyze the stock market universe. As the old adage goes: there are many incentives for an upper level exec to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if “monkeys” know where to look (learn more here).

Furthermore, we’re going to analyze the latest info for OM Group, Inc. (NYSE:OMG).

OM Group, Inc. (NYSE:OMG)

How have hedgies been trading OM Group, Inc. (NYSE:OMG)?

In preparation for the third quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of -11% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably.

Out of the hedge funds we follow, Chuck Royce’s Royce & Associates had the largest position in OM Group, Inc. (NYSE:OMG), worth close to $32.9 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $7.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies that are bullish include D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and Alexander Mitchell’s Scopus Asset Management.

Because OM Group, Inc. (NYSE:OMG) has witnessed a fall in interest from the entirety of the hedge funds we track, logic holds that there were a few money managers who were dropping their entire stakes in Q1. It’s worth mentioning that Gilchrist Berg’s Water Street Capital sold off the biggest investment of all the hedgies we monitor, valued at close to $7.3 million in stock, and Stephen Loukas, David A. Lorber, Zachary George of FrontFour Capital Group was right behind this move, as the fund said goodbye to about $2.1 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 2 funds in Q1.

Insider trading activity in OM Group, Inc. (NYSE:OMG)

Bullish insider trading is best served when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, OM Group, Inc. (NYSE:OMG) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to OM Group, Inc. (NYSE:OMG). These stocks are Koppers Holdings Inc. (NYSE:KOP), WD-40 Company (NASDAQ:WDFC), Flotek Industries Inc (NYSE:FTK), Quaker Chemical Corp (NYSE:KWR), and Kraton Performance Polymers Inc (NYSE:KRA). All of these stocks are in the specialty chemicals industry and their market caps are similar to OMG’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

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!