Hedge Funds Are Dumping Norbord Inc. (OSB)

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Interestingly, Matthew Taylor and Ty Popplewell’s Kortright Capital Partners got rid of the largest investment of all the investors watched by Insider Monkey, comprising about $4.1 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $0.7 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Norbord Inc. (NYSE:OSB) but similarly valued. These stocks are AllianceBernstein Holding LP (NYSE:AB), Rexnord Corp (NYSE:RXN), Pampa Energia S.A. (ADR) (NYSE:PAM), and BancorpSouth, Inc. (NYSE:BXS). All of these stocks’ market caps are similar to OSB’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $172 million. That figure was $28 million in OSB’s case. Pampa Energia S.A. (ADR) (NYSE:PAM) is the most popular stock in this table. On the other hand AllianceBernstein Holding LP (NYSE:AB) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Norbord Inc. (NYSE:OSB) is even less popular than AB. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None