Orion Engineered Carbons SA (OEC): Are Hedge Funds Right About This Stock?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cashed in their entire stakes in the stock during the third quarter. At the top of the heap, Marc Majzner’s Clearline Capital cashed in the largest stake of all the hedgies followed by Insider Monkey, comprising close to $2.7 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund cut about $0 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Orion Engineered Carbons SA (NYSE:OEC). We will take a look at Momo Inc (ADR) (NASDAQ:MOMO), Adeptus Health Inc (NYSE:ADPT), Arcos Dorados Holding Inc (NYSE:ARCO), and Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN). This group of stocks’ market valuations are closest to OEC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MOMO 19 233825 10
ADPT 13 183864 -11
ARCO 15 34054 6
ACHN 27 348980 5

As you can see these stocks had an average of 19 funds with bullish positions and the average amount invested in these stocks was $200 million. That figure was $121 million in OEC’s case. Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) is the most popular stock in this table. On the other hand Adeptus Health Inc (NYSE:ADPT) is the least popular one with 13 funds holding shares. Compared to these stocks Orion Engineered Carbons SA (NYSE:OEC) is even less popular than Adeptus Health Inc (NYSE:ADPT). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none