Hedge Funds Are Dumping Owens & Minor, Inc. (OMI)

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Interestingly, Anand Parekh’s Alyeska Investment Group sold off the largest investment of all the hedgies monitored by Insider Monkey, comprising close to $19.6 million in Owens & Minor, Inc. (NYSE:OMI) stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund dumped about $13.3 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Owens & Minor, Inc. (NYSE:OMI) but similarly valued. These stocks are Globus Medical Inc (NYSE:GMED), KBR, Inc. (NYSE:KBR), Dillard’s, Inc. (NYSE:DDS), and Nomad Foods Limited Ordinary Shares (NYSE:NOMD). This group of stocks’ market caps resemble OMI’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $472 million. That figure was $129 million in OMI’s case. Nomad Foods Limited Ordinary Shares (NYSE:NOMD) is the most popular stock in this table. On the other hand Globus Medical Inc (NYSE:GMED) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Owens & Minor, Inc. (NYSE:OMI) is even less popular than GMED. 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.