Is Oaktree Capital Group LLC (NYSE:OAK) a good investment?
In today’s marketplace, there are plenty of metrics investors can use to track stocks. A duo of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can beat the broader indices by a very impressive margin (see just how much).
Just as necessary, bullish insider trading sentiment is another way to look at the investments you’re interested in. Obviously, there are many reasons for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the valuable potential of this strategy if investors know what to do (learn more here).
What’s more, it’s important to examine the recent info about Oaktree Capital Group LLC (NYSE:OAK).
How have hedgies been trading Oaktree Capital Group LLC (NYSE:OAK)?
At Q2’s end, a total of 15 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, Hawkins Capital, managed by Russell Hawkins, holds the most valuable position in Oaktree Capital Group LLC (NYSE:OAK). Hawkins Capital has a $138.2 million position in the stock, comprising 15.7% of its 13F portfolio. The second largest stake is held by David Einhorn of Greenlight Capital, with a $77.6 million position; 1.5% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Andrew J. M. Spokes’s Farallon Capital, Murray Stahl’s Horizon Asset Management and Chuck Royce’s Royce & Associates.
Due to the fact Oaktree Capital Group LLC (NYSE:OAK) has witnessed a fall in interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedgies that decided to sell off their full holdings last quarter. Interestingly, Curtis Schenker and Craig Effron’s Scoggin dropped the largest position of all the hedgies we track, valued at about $9.8 million in stock. Stephen Loukas David A. Lorber Zachary George’s fund, FrontFour Capital Group, also said goodbye to its stock, about $5.5 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Oaktree Capital Group LLC (NYSE:OAK)?
Insider buying made by high-level executives is best served when the company in focus has experienced transactions within the past half-year. Over the latest six-month time frame, Oaktree Capital Group LLC (NYSE:OAK) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Oaktree Capital Group LLC (NYSE:OAK). These stocks are Northern Trust Corporation (NASDAQ:NTRS), Invesco Ltd. (NYSE:IVZ), Affiliated Managers Group, Inc. (NYSE:AMG), Principal Financial Group Inc (NYSE:PFG), and Carlyle Group LP (NASDAQ:CG). All of these stocks are in the asset management industry and their market caps resemble OAK’s market cap.