Should Olin Corporation (NYSE:OLN) investors track the following data?
Now, according to many of your peers, hedge funds are assumed to be delayed, outdated financial vehicles of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site focuses on the top tier of this group, around 525 funds. It is widely held that this group oversees most of all hedge funds’ total capital, and by paying attention to their best equity investments, we’ve figured out a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as key, positive insider trading activity is another way to analyze the financial markets. Just as you’d expect, there are lots of reasons for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this method if investors understand where to look (learn more here).
Furthermore, it’s important to study the recent info for Olin Corporation (NYSE:OLN).
What does the smart money think about Olin Corporation (NYSE:OLN)?
Heading into Q3, a total of 14 of the hedge funds we track were bullish in this stock, a change of 27% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings significantly.
When using filings from the hedgies we track, David Dreman’s Dreman Value Management had the largest position in Olin Corporation (NYSE:OLN), worth close to $27.8 million, comprising 0.9% of its total 13F portfolio. On Dreman Value Management’s heels is Alexander Mitchell of Scopus Asset Management, with a $4.8 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Paul Marshall and Ian Wace’s Marshall Wace LLP, Israel Englander’s Millennium Management and Mario Gabelli’s GAMCO Investors.
Consequently, particular hedge funds have been driving this bullishness. Dreman Value Management, managed by David Dreman, assembled the most outsized position in Olin Corporation (NYSE:OLN). Dreman Value Management had 27.8 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also initiated a $4.8 million position during the quarter. The other funds with brand new OLN positions are Paul Marshall and Ian Wace’s Marshall Wace LLP, Israel Englander’s Millennium Management, and Mario Gabelli’s GAMCO Investors.
Insider trading activity in Olin Corporation (NYSE:OLN)
Insider buying made by high-level executives is best served when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, Olin Corporation (NYSE:OLN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Olin Corporation (NYSE:OLN). These stocks are Kronos Worldwide, Inc. (NYSE:KRO), Cabot Corp (NYSE:CBT), Chemtura Corp (NYSE:CHMT), Sensient Technologies Corporation (NYSE:SXT), and HB Fuller Co (NYSE:FUL). All of these stocks are in the specialty chemicals industry and their market caps are closest to OLN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Kronos Worldwide, Inc. (NYSE:KRO) | 4 | 0 | 0 |
| Cabot Corp (NYSE:CBT) | 12 | 0 | 0 |
| Chemtura Corp (NYSE:CHMT) | 21 | 0 | 0 |
| Sensient Technologies Corporation (NYSE:SXT) | 11 | 0 | 0 |
| HB Fuller Co (NYSE:FUL) | 15 | 0 | 0 |
Using the returns explained by the previously mentioned tactics, average investors should always track hedge fund and insider trading activity, and Olin Corporation (NYSE:OLN) is an important part of this process.
