Office Depot Inc (NYSE:ODP) was in 28 hedge funds’ portfolio at the end of the first quarter of 2013. ODP has experienced an increase in hedge fund sentiment in recent months. There were 18 hedge funds in our database with ODP holdings at the end of the previous quarter.
In today’s marketplace, there are plenty of gauges investors can use to monitor Mr. Market. A duo of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can beat the market by a solid amount (see just how much).
Just as beneficial, optimistic insider trading sentiment is a second way to parse down the stock market universe. There are a variety of stimuli for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the valuable potential of this strategy if investors understand where to look (learn more here).
With all of this in mind, it’s important to take a peek at the key action regarding Office Depot Inc (NYSE:ODP).
What does the smart money think about Office Depot Inc (NYSE:ODP)?
Heading into Q2, a total of 28 of the hedge funds we track held long positions in this stock, a change of 56% from the previous quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings considerably.
According to our comprehensive database, Jeffrey Smith’s Starboard Value LP had the biggest position in Office Depot Inc (NYSE:ODP), worth close to $165.5 million, accounting for 15% of its total 13F portfolio. Coming in second is Barry Rosenstein of JANA Partners, with a $54.3 million position; 1.1% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Carl Tiedemann and Michael Tiedemann’s TIG Advisors, Israel Englander’s Millennium Management and SAC Subsidiary’s CR Intrinsic Investors.
With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. JANA Partners, managed by Barry Rosenstein, initiated the most valuable position in Office Depot Inc (NYSE:ODP). JANA Partners had 54.3 million invested in the company at the end of the quarter. Carl Tiedemann and Michael Tiedemann’s TIG Advisors also made a $16.8 million investment in the stock during the quarter. The following funds were also among the new ODP investors: SAC Subsidiary’s CR Intrinsic Investors, Brian Taylor’s Pine River Capital Management, and Steven Cohen’s SAC Capital Advisors.
Insider trading activity in Office Depot Inc (NYSE:ODP)
Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Office Depot Inc (NYSE:ODP) has seen 4 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Office Depot Inc (NYSE:ODP). These stocks are Barnes & Noble, Inc. (NYSE:BKS), Finish Line Inc (NASDAQ:FINL), Francesca’s Holdings Corp (NASDAQ:FRAN), OfficeMax Inc (NYSE:OMX), and EZCORP Inc (NASDAQ:EZPW). This group of stocks belong to the specialty retail, other industry and their market caps are similar to ODP’s market cap.