Hedge Funds Are Crazy About OGE Energy Corp. (OGE)
Is OGE Energy Corp. (NYSE:OGE) a good investment?
To many investors, hedge funds are assumed to be bloated, outdated financial tools of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open currently, Insider Monkey focuses on the moguls of this group, about 525 funds. It is widely held that this group controls the majority of the smart money's total assets, and by paying attention to their highest performing picks, we've found a few investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a 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 topped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as crucial, bullish insider trading sentiment is a second way to look at the world of equities. Just as you'd expect, there are plenty of motivations for a bullish insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).
Keeping this in mind, we're going to analyze the newest info surrounding OGE Energy Corp. (NYSE:OGE).
Hedge fund activity in OGE Energy Corp. (NYSE:OGE)
Heading into Q3, a total of 21 of the hedge funds we track held long positions in this stock, a change of 163% from one quarter earlier. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.
According to our 13F database, OZ Management, managed by Daniel S. Och, holds the biggest position in OGE Energy Corp. (NYSE:OGE). OZ Management has a $77 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Israel Englander of Millennium Management, with a $69.1 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Clint Carlson's Carlson Capital, Dmitry Balyasny's Balyasny Asset Management and Ken Griffin's Citadel Investment Group.
Now, particular hedge funds have jumped into OGE Energy Corp. (NYSE:OGE) headfirst. OZ Management, managed by Daniel S. Och, established the largest position in OGE Energy Corp. (NYSE:OGE). OZ Management had 77 million invested in the company at the end of the quarter. Israel Englander's Millennium Management also initiated a $69.1 million position during the quarter. The other funds with brand new OGE positions are Clint Carlson's Carlson Capital, Dmitry Balyasny's Balyasny Asset Management, and Ken Griffin's Citadel Investment Group.
How have insiders been trading OGE Energy Corp. (NYSE:OGE)?
Insider buying is best served when the company we're looking at has experienced transactions within the past 180 days. Over the last half-year time frame, OGE Energy Corp. (NYSE:OGE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to OGE Energy Corp. (NYSE:OGE). These stocks are Brookfield Infrastructure Partners L.P. (NYSE:BIP), Alliant Energy Corporation (NYSE:LNT), Pinnacle West Capital Corporation (NYSE:PNW), CMS Energy Corporation (NYSE:CMS), and SCANA Corporation (NYSE:SCG). This group of stocks are in the electric utilities industry and their market caps match OGE's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Brookfield Infrastructure Partners L.P. (NYSE:BIP)
Alliant Energy Corporation (NYSE:LNT)
Pinnacle West Capital Corporation (NYSE:PNW)
CMS Energy Corporation (NYSE:CMS)
SCANA Corporation (NYSE:SCG)
Using the results shown by our tactics, average investors must always keep one eye on hedge fund and insider trading sentiment, and OGE Energy Corp. (NYSE:OGE) shareholders fit into this picture quite nicely.