Here is What Hedge Funds Think About Omega Healthcare Investors Inc (OHI)

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. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest stake of the 700 funds followed by Insider Monkey, valued at close to $14.7 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund cut about $2.6 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Omega Healthcare Investors Inc (NYSE:OHI). These stocks are Southwestern Energy Company (NYSE:SWN), Lennox International Inc. (NYSE:LII), W.P. Carey Inc. REIT (NYSE:WPC), and Stericycle Inc (NASDAQ:SRCL). This group of stocks’ market values are similar to OHI’s market value.

As you can see these stocks had an average of 23.75 hedge funds with bullish positions and the average amount invested in these stocks was $489 million. That figure was $50 million in OHI’s case. Southwestern Energy Company (NYSE:SWN) is the most popular stock in this table. On the other hand Lennox International Inc. (NYSE:LII) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Omega Healthcare Investors Inc (NYSE:OHI) is even less popular than LII. 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.