Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s What Hedge Funds Think About Oppenheimer Holdings Inc. (OPY)

While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and optimism towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the first quarter and hedging or reducing many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Oppenheimer Holdings Inc. (NYSE:OPY).

Is Oppenheimer Holdings Inc. (NYSE:OPY) a buy, sell, or hold? Investors who are in the know are buying. The number of long hedge fund bets advanced by 1 lately. Our calculations also showed that opy isn’t among the 30 most popular stocks among hedge funds.

In the eyes of most stock holders, hedge funds are assumed to be worthless, old investment tools of years past. While there are over 8000 funds in operation at present, Our experts hone in on the masters of this club, around 750 funds. Most estimates calculate that this group of people direct bulk of all hedge funds’ total capital, and by tailing their first-class picks, Insider Monkey has revealed a few investment strategies that have historically beaten the broader indices. Insider Monkey’s flagship hedge fund strategy exceeded the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in our latest quarterly update and they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year).

Noam Gottesman GLG Partners

Noam Gottesman, GLG Partners

We’re going to take a glance at the latest hedge fund action encompassing Oppenheimer Holdings Inc. (NYSE:OPY).

What does smart money think about Oppenheimer Holdings Inc. (NYSE:OPY)?

At the end of the first quarter, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in OPY over the last 15 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with OPY Positions

More specifically, Renaissance Technologies was the largest shareholder of Oppenheimer Holdings Inc. (NYSE:OPY), with a stake worth $11.1 million reported as of the end of March. Trailing Renaissance Technologies was AQR Capital Management, which amassed a stake valued at $8 million. GLG Partners, Arrowstreet Capital, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios.

As one would reasonably expect, some big names have jumped into Oppenheimer Holdings Inc. (NYSE:OPY) headfirst. Millennium Management, managed by Israel Englander, initiated the most valuable position in Oppenheimer Holdings Inc. (NYSE:OPY). Millennium Management had $0.4 million invested in the company at the end of the quarter. David Harding’s Winton Capital Management also made a $0.4 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks similar to Oppenheimer Holdings Inc. (NYSE:OPY). We will take a look at Enterprise Bancorp, Inc (NASDAQ:EBTC), Merus N.V. (NASDAQ:MRUS), Kadmon Holdings, Inc. (NYSE:KDMN), and Peoples Financial Services Corp. (NASDAQ:PFIS). This group of stocks’ market valuations resemble OPY’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EBTC 1 1296 -2
MRUS 6 109071 0
KDMN 15 150710 5
PFIS 1 2374 0
Average 5.75 65863 0.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 5.75 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $35 million in OPY’s case. Kadmon Holdings, Inc. (NYSE:KDMN) is the most popular stock in this table. On the other hand Enterprise Bancorp, Inc (NASDAQ:EBTC) is the least popular one with only 1 bullish hedge fund positions. Oppenheimer Holdings Inc. (NYSE:OPY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately OPY wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on OPY were disappointed as the stock returned 3% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.

Disclosure: None. This article was originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...