The successful funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Orion Group Holdings Inc (NYSE:ORN) from the perspective of those successful funds.
Hedge fund interest in Orion Group Holdings Inc (NYSE:ORN) shares was flat during the third quarter. This is usually a negative indicator. 6 hedge funds that we track owned the stock on September 30, same as on June 30. At the end of this article we will also compare ORN to other stocks including Senomyx Inc. (NASDAQ:SNMX), Gladstone Capital Corporation (NASDAQ:GLAD), and Arbutus Biopharma Corp (NASDAQ:ABUS) to get a better sense of its popularity.
We care about hedge fund sentiment because historically hedge funds’ stock picks delivered strong risk adjusted returns. There are certain segments of the market where hedge funds’ stock picks performed much better than its benchmarks. For instance, the 30 most popular mid-cap stocks among the best performing hedge funds returned 18% over the last 12 months outpacing S&P 500 Index by more than 10 percentage points. We developed this strategy 2.5 years ago and started sharing its picks in our quarterly newsletter. It bested the S&P 500 Index ETFs by delivering a solid 39% vs. 22% gain for its benchmarks.
What have hedge funds been doing with Orion Group Holdings Inc (NYSE:ORN)?
At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged from one quarter earlier. On the other hand, there were a total of 12 hedge funds with a bullish position in ORN a year prior, which has since slumped by 50%. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies, one of the largest hedge funds in the world, has the biggest position in Orion Group Holdings Inc (NYSE:ORN), worth close to $3.8 million. Coming in second is David E. Shaw’s D E Shaw, with a $1.6 million position. Remaining members of the smart money that are bullish include Mark Coe’s Coe Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.