To many of your peers, hedge funds are seen as overrated, outdated investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation in present day, Insider Monkey aim at the leaders of this club, close to 525 funds. It is assumed that this group has its hands on the lion's share of all hedge funds' total capital, and by paying attention to their highest performing equity investments, we've deciphered a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as key, positive insider trading sentiment is another way to look at the world of equities. Just as you'd expect, there are a number of incentives for an executive to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if shareholders understand what to do (learn more here).
What's more, it's important to examine the newest info about G-III Apparel Group, Ltd. (NASDAQ:GIII).
In preparation for the third quarter, a total of 17 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.
According to our 13F database, Chuck Royce's Royce & Associates had the most valuable position in G-III Apparel Group, Ltd. (NASDAQ:GIII), worth close to $111.2 million, comprising 0.3% of its total 13F portfolio. Coming in second is Matt Sirovich and Jeremy Mindich of Scopia Capital, with a $91.3 million position; the fund has 2.6% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Donald Chiboucis's Columbus Circle Investors, David Keidan's Buckingham Capital Management and Drew Cupps's Cupps Capital Management.
Because G-III Apparel Group, Ltd. (NASDAQ:GIII) has experienced dropping sentiment from the smart money's best and brightest, logic holds that there is a sect of money managers who were dropping their full holdings heading into Q2. Intriguingly, Malcolm Fairbairn's Ascend Capital dumped the biggest investment of the 450+ funds we monitor, totaling about $4 million in stock, and Alexander Mitchell of Scopus Asset Management was right behind this move, as the fund sold off about $3.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider buying made by high-level executives is at its handiest when the company we're looking at has seen transactions within the past half-year. Over the last 180-day time period, G-III Apparel Group, Ltd. (NASDAQ:GIII) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also review the relationship between both of these indicators in other stocks similar to G-III Apparel Group, Ltd. (NASDAQ:GIII). These stocks are UniFirst Corp (NYSE:UNF), Maidenform Brands, Inc. (NYSE:MFB), Quiksilver, Inc. (NYSE:ZQK), True Religion Apparel, Inc. (NASDAQ:TRLG), and Oxford Industries, Inc. (NYSE:OXM). This group of stocks belong to the textile - apparel clothing industry and their market caps resemble GIII's market cap.