The market has been volatile due to elections and the potential of another Federal Reserve rate increase. Small cap stocks have been on a tear, as the Russell 2000 ETF (IWM) has outperformed the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of June. SEC filings and hedge fund investor letters indicate that the smart money seems to be getting back in stocks, and the funds’ movements is one of the reasons why small-cap stocks are red hot. In this article, we analyze what the smart money thinks of Old Republic International Corporation (NYSE:ORI) and find out how it is affected by hedge funds’ moves.
Old Republic International Corporation (NYSE:ORI) investors should be aware of an increase in hedge fund sentiment in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Voya Financial Inc (NYSE:VOYA), Tegna Inc (NYSE:TGNA), and Old Dominion Freight Line (NASDAQ:ODFL) to gather more data points.
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Keeping this in mind, we’re going to review the key action encompassing Old Republic International Corporation (NYSE:ORI).
Hedge fund activity in Old Republic International Corporation (NYSE:ORI)
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a boost of 15% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jim Simons’s Renaissance Technologies has the biggest position in Old Republic International Corporation (NYSE:ORI), worth close to $58.3 million, comprising 0.1% of its total 13F portfolio. Coming in second is AQR Capital Management, led by Cliff Asness, holding a $57.4 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that hold long positions contain D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors and Shawn Bergerson and Martin Kalish’s Waterstone Capital Management.