Is OneMain Holdings (OMF) A Smart Long-Term Buy?

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned OneMain Holdings, Inc. (NYSE: OMF) and discussed its stance on the firm. OneMain Holdings, Inc. is an Evansville, Indiana-based financial services company with a $6.5 billion market capitalization. OMF delivered a 4.51% return since the beginning of the year, while its 12-month returns are up by 5.60%. The stock closed at $50.33 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about OneMain Holdings, Inc.  in its Q3 2021 investor letter:

“We bought OneMain Holdings (OMF), a non-bank provider of personal loans. OneMain is benefitting from the favorable credit environment and management is exceptionally dedicated to paying dividends, both regular and special.”

Based on our calculations, OneMain Holdings, Inc. (NYSE: OMF) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. OMF was in 41 hedge fund portfolios at the end of the third quarter of 2021, compared to 41 funds in the previous quarter. OneMain Holdings, Inc. (NYSE: OMF) delivered a -9.67% return in the past 3 months.

Last month, we published an article that includes OMF in the 10 Dividend Stocks to Buy According to Hoon Kim’s Quantinno Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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