What: Shares of mortgage insurer PMI Group (NYSE: PMI) jumped more than 10% in intraday trading today. The shares have been absolutely surging over the past few days after hedge fund Omega Advisors disclosed a stake in the company and Omega's CEO made some encouraging remarks about PMI.

So what: Like fellow mortgage insurers MGIC Investment (NYSE: MTG) and Radian Group (NYSE: RDN), PMI was absolutely ravaged by the housing meltdown. Investors are concerned about the future of these companies, and as a result the stocks have traded down significantly. Having big-shot investors step in has provided investors with a shot of confidence.

Now what: This doesn't come out of the blue for Omega -- the company already had a sizable stake in MGIC. And John Paulson and his firm had already disclosed a stake in PMI. Savvy investors, though, will find their own reasons for taking a shot on these beaten-down insurers. Watching what the "pros" do can point you in the right direction, but it's nearly always a bad idea to just blindly follow their moves.

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