In the eyes of many of your peers, hedge funds are viewed as useless, outdated investment tools of a forgotten age. Although there are over 8,000 hedge funds with their doors open in present day, Insider Monkey aim at the masters of this club, around 525 funds. It is assumed that this group oversees the lion’s share of all hedge funds’ total capital, and by paying attention to their highest performing investments, we’ve formulated a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as useful, positive insider trading activity is another way to analyze the world of equities. Just as you’d expect, there are lots of stimuli for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this tactic if “monkeys” know what to do (learn more here).
Now that that’s out of the way, it’s important to discuss the latest info surrounding Orion Marine Group, Inc. (NYSE:ORN).
What does the smart money think about Orion Marine Group, Inc. (NYSE:ORN)?
In preparation for the third quarter, a total of 9 of the hedge funds we track were long in this stock, a change of -10% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully.
Out of the hedge funds we follow, Richard S. Meisenberg’s ACK Asset Management had the most valuable position in Orion Marine Group, Inc. (NYSE:ORN), worth close to $8.1 million, comprising 3.3% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Ken Griffin’s Citadel Investment Group, John Overdeck and David Siegel’s Two Sigma Advisors and David Cohen and Harold Levy’s Iridian Asset Management.
As Orion Marine Group, Inc. (NYSE:ORN) has faced bearish sentiment from upper-tier hedge fund managers, we can see that there were a few money managers that elected to cut their entire stakes last quarter. At the top of the heap, Cliff Asness’s AQR Capital Management said goodbye to the biggest stake of all the hedgies we watch, totaling an estimated $0.4 million in stock. Ken Brodkowitz and Mike Vermut’s fund, Newland Capital, also said goodbye to its stock, about $0.4 million worth. These transactions are important to note, as total hedge fund interest fell by 1 funds last quarter.
Insider trading activity in Orion Marine Group, Inc. (NYSE:ORN)
Legal insider trading, particularly when it’s bullish, is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time period, Orion Marine Group, Inc. (NYSE:ORN) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Orion Marine Group, Inc. (NYSE:ORN). These stocks are Layne Christensen Company (NASDAQ:LAYN), Sterling Construction Company, Inc. (NASDAQ:STRL), Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), Matrix Service Co (NASDAQ:MTRX), and Argan, Inc. (NYSEAMEX:AGX). This group of stocks are the members of the heavy construction industry and their market caps match ORN’s market cap.