OM Group, Inc (OMG): FrontFour Capital Slighty Trims Its Stake

It seems clear that FrontFour Capital Group intends on maintaining its position in the company for a longer period of time, while possibly expanding its activist role. Although it is one of its largest shareholders, the hedge fund is not the only institutional investor backing OM Group, Inc (NYSE:OMG). Chuck Royce’s Royce & Associates is also bullish regarding this stock, boasting a position of 1.1 million shares. Steven Cohen’s Point72 Asset Management disclosed a stake of more than 1 million shares in its latest 13F filing and is also keen on seeing shareholder value grow.

OM Group is an $858 million market cap technology-driven industrial company operating in the basic materials sector. Its activities include the development, manufacture, and distribution of industrial-use magnetic materials and related products. In addition, the company provides batteries, battery management systems, and battery-related research for the defense, space, medical, and commercial markets. The Cleveland, Ohio-based firm also counts with a specialty chemicals segment, dedicated to the development of chemicals for electronic and industrial applications. Last November, OM Group successfully acquired Ener-Tek International, Inc., which enabled it to expand its lithium-ion technology capabilities. Since Ener-Tek has been operating in the defense and aerospace for some time now, the purchase will allow OM Group to gain a foothold in profitable defense programs.

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