Omega Protein Corporation (OME): Are Hedge Funds Right About This Stock?

As one would reasonably expect, specific money managers were breaking ground themselves. Hawk Ridge Management, managed by David Brown, assembled the most outsized position in Omega Protein Corporation (NYSE:OME). Hawk Ridge Management had $2.1 million invested in the company at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made an $1.1 million investment in the stock during the quarter. The other funds with brand new OME positions are Ken Gray and Steve Walsh’s Bryn Mawr Capital and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Omega Protein Corporation (NYSE:OME) but similarly valued. These stocks are THL Credit, Inc. (NASDAQ:TCRD), Corindus Vascular Robotics Inc (NYSEMKT:CVRS), Weight Watchers International, Inc. (NYSE:WTW), and Fifth Street Asset Management Inc (NASDAQ:FSAM). This group of stocks’ market caps resemble OME’s market cap.

As you can see these stocks had an average of eight hedge funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $46 million in OME’s case. Weight Watchers International, Inc. (NYSE:WTW) is the most popular stock in this table. On the other hand Corindus Vascular Robotics Inc (NYSEMKT:CVRS) is the least popular one with only 4 bullish hedge fund positions. Omega Protein Corporation (NYSE:OME) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WTW might be a better candidate to consider a long position.