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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!