You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really difficult for individual investors to make a proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
OGE Energy Corp. (NYSE:OGE) has seen an increase in activity from the world’s largest hedge funds lately. OGE Energy Corp. (NYSE:OGE) was in 22 hedge funds’ portfolios at the end of the third quarter of 2015. There were 15 hedge funds in our database with OGE Energy Corp. (NYSE:OGE) holdings at the end of the previous quarter. At the end of this article, we will also compare OGE Energy Corp. (NYSE:OGE) to other stocks including 58.com Inc (ADR) (NYSE:WUBA), Spectrum Brands Holdings, Inc. (NYSE:SPB), and Range Resources Corp. (NYSE:RRC) to get a better sense of its popularity.
To the average investor there are numerous metrics investors employ to size up stocks. Two of the most under-the-radar metrics are hedge fund and insider trading signals. our researchers have shown that, historically, those who follow the top picks of the top hedge fund managers can beat their index-focused peers by a healthy amount (see the details here).
Now, we’re going to take a look at the key action encompassing OGE Energy Corp. (NYSE:OGE).
Hedge fund activity in OGE Energy Corp. (NYSE:OGE)
At the end of September, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 47% from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund holdings data compiled by Insider Monkey, Ken Griffin’s Citadel Investment Group has the number one position in OGE Energy Corp. (NYSE:OGE), worth close to $181.7 million, amounting to 0.2% of its total 13F portfolio. Sitting in the number two spot is Renaissance Technologies, which holds a $13 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish comprise John Overdeck and David Siegel’s Two Sigma Advisors, Israel Englander’s Millennium Management, and Louis Bacon’s Moore Global Investments.
Now, specific money managers have jumped into OGE Energy Corp. (NYSE:OGE) headfirst. Millennium Management assembled the biggest position in OGE Energy Corp. (NYSE:OGE). Millennium Management had $7.9 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $3.1 million investment in the stock during the quarter. The following funds were also among the new OGE investors: Glenn Russell Dubin’s Highbridge Capital Management, Chao Ku’s Nine Chapters Capital Management, and Roger Ibbotson’s Zebra Capital Management.
Let’s now take a look at hedge fund activity in other stocks similar to OGE Energy Corp. (NYSE:OGE). We will take a look at 58.com Inc (ADR) (NYSE:WUBA), Spectrum Brands Holdings, Inc. (NYSE:SPB), Range Resources Corp. (NYSE:RRC), and Service Corporation International (NYSE:SCI). This group of stocks’ market values are similar to OGE Energy Corp. (NYSE:OGE)’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $600 million. That figure was $233 million in OGE Energy Corp. (NYSE:OGE)’s case. Service Corporation International (NYSE:SCI) is the most popular stock in this table. On the other hand, Spectrum Brands Holdings, Inc. (NYSE:SPB) is the least popular one with only 25 bullish hedge fund positions. Compared to these stocks OGE Energy Corp. (NYSE:OGE) is even less popular than Spectrum Brands Holdings, Inc. (NYSE:SPB). Considering that hedge funds aren’t fond of this stock in relation to its similar-sized peers, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock, although their interest in it is growing.