Do Hedge Funds Love Lululemon Athletica inc. (LULU)?

Judging by the fact that Lululemon Athletica inc. (NASDAQ:LULU) has faced falling interest from hedge fund managers, logic holds that there exists a select few money managers who were dropping their entire stakes in the third quarter. At the top of the heap, Edmond M. Safra’s EMS Capital said goodbye to the largest investment of the 700 funds tracked by Insider Monkey, worth about $19.6 million in stock, and John Burbank’s Passport Capital was right behind this move, as the fund said goodbye to about $17 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 3 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Lululemon Athletica inc. (NASDAQ:LULU). We will take a look at FactSet Research Systems Inc. (NYSE:FDS), Alliant Energy Corporation (NYSE:LNT), AutoNation, Inc. (NYSE:AN), and Duke Realty Corp (NYSE:DRE). This group of stocks’ market values match LULU’s market value.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $408 million. That figure was $837 million in LULU’s case. AutoNation, Inc. (NYSE:AN) is the most popular stock in this table. On the other hand Duke Realty Corp (NYSE:DRE) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Lululemon Athletica inc. (NASDAQ:LULU) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.