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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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookies were harmed in the making of this article.