Should You Buy OneBeacon Insurance Group, Ltd. (OB)?

Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.

Hedge fund interest in OneBeacon Insurance Group, Ltd. (NYSE:OB) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare OB to other stocks including Advanced Micro Devices, Inc. (NASDAQ:AMD), Descartes Systems Group (USA) (NASDAQ:DSGX), and Sarepta Therapeutics Inc (NASDAQ:SRPT) to get a better sense of its popularity.

With all of this in mind, we’re going to take a peek at the new action surrounding OneBeacon Insurance Group, Ltd. (NYSE:OB).

What does the smart money think about OneBeacon Insurance Group, Ltd. (NYSE:OB)?

Heading into Q4, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital has the number one position in OneBeacon Insurance Group, Ltd. (NYSE:OB), worth close to $3.5 million, corresponding to 0.9% of its total 13F portfolio. The second most bullish fund manager is Jim Simons of Renaissance Technologies, with a $1.5 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining peers with similar optimism contain Israel Englander’s Millennium Management, John Overdeck and David Siegel’s Two Sigma Advisors and Lawrence Sapanski’s Scoria Capital.