Aeropostale, Inc. (NYSE:ARO), Children’s Place Retail Stores: Stage Stores Inc (NYSE:SSI): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Is Stage Stores Inc (NYSE:SSI) a superb investment now? Money managers are becoming hopeful. The number of long hedge fund bets moved up by 2 recently.

To most shareholders, hedge funds are viewed as slow, old financial vehicles of yesteryear. While there are over 8000 funds with their doors open at present, we hone in on the top tier of this club, close to 450 funds. It is widely believed that this group controls most of the hedge fund industry’s total capital, and by tracking their highest performing investments, we have spotted a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Stage Stores Inc (NYSE:SSI)

Equally as important, optimistic insider trading activity is a second way to parse down the stock market universe. Just as you’d expect, there are a number of incentives for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this method if you understand where to look (learn more here).

With all of this in mind, it’s important to take a peek at the key action regarding Stage Stores Inc (NYSE:SSI).

Hedge fund activity in Stage Stores Inc (NYSE:SSI)

At the end of the fourth quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 15% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.

According to our comprehensive database, Manatuck Hill Partners, managed by Mark Broach, holds the biggest position in Stage Stores Inc (NYSE:SSI). Manatuck Hill Partners has a $23 million position in the stock, comprising 3.4% of its 13F portfolio. Coming in second is SAC Capital Advisors, managed by Steven Cohen, which held a $9 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Alexander Mitchell’s Scopus Asset Management, D. E. Shaw’s D E Shaw and Alexander Mitchell’s Scopus Asset Management.

As aggregate interest increased, some big names were breaking ground themselves. Scopus Asset Management, managed by Alexander Mitchell, created the most outsized call position in Stage Stores Inc (NYSE:SSI). Scopus Asset Management had 5 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also initiated a $2 million position during the quarter. The following funds were also among the new SSI investors: Donald Chiboucis’s Columbus Circle Investors, David Keidan’s Buckingham Capital Management, and John A. Levin’s Levin Capital Strategies.

What have insiders been doing with Stage Stores Inc (NYSE:SSI)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past half-year. Over the last 180-day time frame, Stage Stores Inc (NYSE:SSI) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Stage Stores Inc (NYSE:SSI). These stocks are Aeropostale, Inc. (NYSE:ARO), Children’s Place Retail Stores, Inc. (NASDAQ:PLCE), The Jones Group Inc. (NYSE:JNY), rue21, inc. (NASDAQ:RUE), and Cato Corp (NYSE:CATO). This group of stocks are the members of the apparel stores industry and their market caps resemble SSI’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Aeropostale, Inc. (NYSE:ARO) 27 0 0
Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) 18 1 4
The Jones Group Inc. (NYSE:JNY) 13 0 3
rue21, inc. (NASDAQ:RUE) 5 0 5
Cato Corp (NYSE:CATO) 5 1 1

With the returns exhibited by the aforementioned strategies, retail investors must always watch hedge fund and insider trading sentiment, and Stage Stores Inc (NYSE:SSI) is an important part of this process.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!