Hedge funds are not perfect. They have their bad picks just like everyone else. Micron, a stock hedge funds have loved, lost 50% during the last 12 months ending in October 30. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data shows that the top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% in the same time period, vs. a gain of 5.2% for the S&P 500 Index. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of Perry Ellis International, Inc. (NASDAQ:PERY).
Perry Ellis International, Inc. (NASDAQ:PERY) was in 17 hedge funds’ portfolios at the end of September. PERY has seen an increase in hedge fund sentiment of late. There were 16 hedge funds in our database with PERY positions at the end of the previous quarter. At the end of this article we will also compare PERY to other stocks including Addus Homecare Corporation (NASDAQ:ADUS), IGI Laboratories, Inc. (NYSEAMEX:IG), and Campus Crest Communities Inc (NYSE:CCG) to get a better sense of its popularity.
In the eyes of most traders, hedge funds are seen as worthless, old investment vehicles of years past. While there are over 8,000 funds with their doors open at present, Hedge fund experts at Insider Monkey choose to focus on the elite of this group, about 700 funds. These money managers oversee the lion’s share of all hedge funds’ total capital, and by keeping an eye on their inimitable stock picks, Insider Monkey has brought to light a few investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points a year for a decade in its back tests.
With all of this in mind, we’re going to take a look at the fresh action encompassing Perry Ellis International, Inc. (NASDAQ:PERY).
Hedge fund activity in Perry Ellis International, Inc. (NASDAQ:PERY)
Heading into Q4, a total of 17 of the hedge funds tracked by Insider Monkey were long in this stock, a boost of 6% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies followed by Insider Monkey, Jeffrey Jacobowitz’s Simcoe Capital Management has the biggest position in Perry Ellis International, Inc. (NASDAQ:PERY), worth close to $6.7 million, accounting for 4.4% of its total 13F portfolio. On Simcoe Capital Management’s heels is Renaissance Technologies, managed by Jim Simons, which holds a $5.9 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions consist of Israel Englander’s Millennium Management, Cliff Asness’ AQR Capital Management, and Zeke Ashton’s Centaur Capital Partners.
Now, key money managers have been driving this bullishness. Algert Coldiron Investors, managed by Peter Algert and Kevin Coldiron, created the largest position in Perry Ellis International, Inc. (NASDAQ:PERY). Algert Coldiron Investors had $1 million invested in the company at the end of the quarter. Mike Vranos’ Ellington also initiated a $0.6 million position during the quarter. The other funds with brand new PERY positions are Glenn Russell Dubin’s Highbridge Capital Management, and Dmitry Balyasny’s Balyasny Asset Management.
Let’s also review hedge fund activity in other stocks similar to Perry Ellis International, Inc. (NASDAQ:PERY). We will take a look at Addus Homecare Corporation (NASDAQ:ADUS), IGI Laboratories, Inc. (NYSEAMEX:IG), Campus Crest Communities Inc (NYSE:CCG), and Stoneridge, Inc. (NYSE:SRI). This group of stocks’ market valuations are closest to PERY’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That eclipsed the mere $32 million in PERY shares that were held by the investors that we track. Stoneridge, Inc. (NYSE:SRI) is the most popular stock in this table. On the other hand Addus Homecare Corporation (NASDAQ:ADUS) is the least popular one with only ten bullish hedge fund positions. Compared to these stocks Perry Ellis International, Inc. (NASDAQ:PERY) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its similar-sized peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.