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Do Hedge Funds and Insiders Love Fossil Inc (NASDAQ:FOSL)?

Fossil Inc (NASDAQ:FOSL) was in 17 hedge funds’ portfolio at the end of December. FOSL shareholders have witnessed a decrease in enthusiasm from smart money in recent months. There were 18 hedge funds in our database with FOSL holdings at the end of the previous quarter.

Fossil Inc

To the average investor, there are dozens of metrics investors can use to monitor the equity markets. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can beat the market by a superb margin (see just how much).

Just as integral, bullish insider trading activity is a second way to break down the stock market universe. There are a number of motivations for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).

Keeping this in mind, it’s important to take a peek at the recent action regarding Fossil Inc (NASDAQ:FOSL).

How have hedgies been trading Fossil Inc (NASDAQ:FOSL)?

At the end of the fourth quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of -6% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, SAC Capital Advisors, managed by Steven Cohen, holds the largest position in Fossil Inc (NASDAQ:FOSL). SAC Capital Advisors has a $147 million position in the stock, comprising 0.7% of its 13F portfolio. Coming in second is Ricky Sandler of Eminence Capital, with a $89 million position; 0% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include SAC Subsidiary’s Sigma Capital Management, David Keidan’s Buckingham Capital Management and Paul Tudor Jones’s Tudor Investment Corp.

Seeing as Fossil Inc (NASDAQ:FOSL) has experienced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few money managers who were dropping their entire stakes heading into 2013. It’s worth mentioning that Jim Simons’s Renaissance Technologies said goodbye to the biggest investment of the “upper crust” of funds we key on, comprising an estimated $45 million in stock.. Alexander Mitchell’s fund, Scopus Asset Management, also cut its stock, about $34 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 1 funds heading into 2013.

How are insiders trading Fossil Inc (NASDAQ:FOSL)?

Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time frame, Fossil Inc (NASDAQ:FOSL) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

With the returns exhibited by our time-tested strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Fossil Inc (NASDAQ:FOSL) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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