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Cherokee Inc (CHKE): Are Hedge Funds Right About This Stock?

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A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Cherokee Inc. (NASDAQ:CHKE).

Cherokee Inc. (NASDAQ:CHKE) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 6 hedge funds’ portfolios at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Fate Therapeutics Inc (NASDAQ:FATE), PC Tel Inc (NASDAQ:PCTI), and Tremor Video Inc (NYSE:TRMR) to gather more data points.

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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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Keeping this in mind, we’re going to analyze the key action regarding Cherokee Inc. (NASDAQ:CHKE).

What have hedge funds been doing with Cherokee Inc. (NASDAQ:CHKE)?

Heading into the fourth quarter of 2016, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged from one quarter earlier. By comparison, 7 hedge funds held shares or bullish call options in CHKE heading into this year. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

HedgeFundSentimentChart

Of the funds tracked by Insider Monkey, Jeffrey Bronchick’s Cove Street Capital has the biggest position in Cherokee Inc. (NASDAQ:CHKE), worth close to $17.7 million, amounting to 1.9% of its total 13F portfolio. Coming in second is David Park’s Headlands Capital with an $11.3 million position; 9% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors that hold long positions include Renaissance Technologies, which is one of the largest hedge funds in the world, Phil Frohlich’s Prescott Group Capital Management and Israel Englander’s Millennium Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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