Hedge Fund Buying Alerts: Michael Kors Holdings Ltd (KORS), J.C. Penney Company, Inc. (JCP) & More

Page 1 of 2

The most comprehensive picture of what hedge funds own comes in the form of quarterly 13F filings with the SEC, and these filings provide the core of the information we use to develop investment strategies. For example, our research shows that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year (learn more about our small cap strategy) and our own portfolio based on these techniques outperformed the S&P 500 by 33 percentage points in the last 11 months. We can also get more up to date information about large hedge fund buys in small-cap and mid-cap stocks (as well as the occasional large cap) from 13D and 13G filings, filed whenever a fund buys over 5% of a company’s total shares outstanding. Here are five stocks which hedge funds have reported buying recently:

Billionaire Stephen Mandel’s Lone Pine Capital has reported a position of over 10 million shares in Michael Kors Holdings Ltd (NYSE:KORS), or just over 5% of the company; this is up from about 8.1 million shares as of the beginning of April (see more of Mandel’s stock picks). The apparel and accessories company is a growth monster: revenue was up over 50% in its fiscal Q1 (which ended in June) versus a year earlier, with net income rising over 80%. Markets have already priced in high growth, with a trailing P/E of 33, but forecasts from Wall Street analysts place the five-year PEG ratio right about at 1.

LONE PINE CAPITALPerry Capital, managed by billionaire Richard Perry, has made a move into the brewing battle at J.C. Penney Company, Inc. (NYSE:JCP) as Perry and fellow billionaire Bill Ackman of Pershing Square are apparently in agreement that the troubled department store should find a new CEO soon and replace the chairman of the Board. Check out more stocks Perry likes. The fund now owns over 7% of the retailer, which is expected to be unprofitable both this year and next year. With revenue falling over 10% from its levels a year ago, J.C. Penney Company, Inc. (NYSE:JCP) has drawn considerable attention from short sellers with 29% of the float held short.

SAC Capital Advisors recently disclosed ownership of 3.9 million shares of Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), an owner of television stations which recently completed its acquisition of Fisher Communications. SAC is managed by billionaire Steve Cohen and his team (find Cohen’s favorite stocks). Higher costs and interest expenses have offset revenue growth at Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) in recent quarters, though in part due to this acquisition the sell-side seems to expect improvement next year. Specifically, analysts are forecasting $2.69 in EPS- resulting in a forward P/E of 9- though we would be a bit concerned about integration risk.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!