Should You Buy OmniAmerican Bancorp, Inc. (OABC)?

Page 1 of 2

Is OmniAmerican Bancorp, Inc. (NASDAQ:OABC) the right pick for your portfolio? Money managers are in a bullish mood. The number of bullish hedge fund bets went up by 1 lately.

To most investors, hedge funds are perceived as worthless, outdated investment vehicles of yesteryear. While there are more than 8000 funds trading today, we choose to focus on the leaders of this group, close to 450 funds. It is widely believed that this group controls the lion’s share of the smart money’s total asset base, and by watching their highest performing equity investments, we have unearthed a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually 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 24 percentage points in 7 months (see all of our picks from August).

Michael Price

Just as important, bullish insider trading activity is another way to break down the world of equities. Obviously, there are a number of incentives for an insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this method if “monkeys” know what to do (learn more here).

With all of this in mind, it’s important to take a gander at the latest action encompassing OmniAmerican Bancorp, Inc. (NASDAQ:OABC).

How have hedgies been trading OmniAmerican Bancorp, Inc. (NASDAQ:OABC)?

At the end of the fourth quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes considerably.

Of the funds we track, MFP Investors, managed by Michael Price, holds the biggest position in OmniAmerican Bancorp, Inc. (NASDAQ:OABC). MFP Investors has a $6.9 million position in the stock, comprising 1% of its 13F portfolio. On MFP Investors’s heels is Jim Simons of Renaissance Technologies, with a $3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Howard Guberman’s Gruss Asset Management, Neil Chriss’s Hutchin Hill Capital and D. E. Shaw’s D E Shaw.

Consequently, specific money managers have jumped into OmniAmerican Bancorp, Inc. (NASDAQ:OABC) headfirst. Hutchin Hill Capital, managed by Neil Chriss, established the most valuable position in OmniAmerican Bancorp, Inc. (NASDAQ:OABC). Hutchin Hill Capital had 0.9 million invested in the company at the end of the quarter.

Insider trading activity in OmniAmerican Bancorp, Inc. (NASDAQ:OABC)

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past 180 days. Over the last six-month time frame, OmniAmerican Bancorp, Inc. (NASDAQ:OABC) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to OmniAmerican Bancorp, Inc. (NASDAQ:OABC). These stocks are MidWestOne Financial Group, Inc. (NASDAQ:MOFG), Southwest Bancorp, Inc. (NASDAQ:OKSB), Great Southern Bancorp, Inc. (NASDAQ:GSBC), Enterprise Financial Services Corp (NASDAQ:EFSC), and CoBiz Financial Inc (NASDAQ:COBZ). This group of stocks are in the regional – southwest banks industry and their market caps are similar to OABC’s market cap.

Page 1 of 2
Comments
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

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

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!