Tumi Holdings Inc (NYSE:TUMI) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. TUMI shareholders have witnessed an increase in support from the world’s most elite money managers recently. There were 6 hedge funds in our database with TUMI holdings at the end of the previous quarter.
In the eyes of most investors, hedge funds are assumed to be underperforming, outdated investment tools of yesteryear. While there are greater than 8000 funds trading at present, we choose to focus on the moguls of this club, about 450 funds. Most estimates calculate that this group oversees most of the hedge fund industry’s total capital, and by watching their best picks, we have unearthed a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 beaten the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).
Just as beneficial, bullish insider trading activity is another way to parse down the stock market universe. Just as you’d expect, there are lots of reasons for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would buy. Several empirical studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).
Consequently, let’s take a gander at the key action surrounding Tumi Holdings Inc (NYSE:TUMI).
What have hedge funds been doing with Tumi Holdings Inc (NYSE:TUMI)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 50% from the third quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management had the most valuable position in Tumi Holdings Inc (NYSE:TUMI), worth close to $50 million, accounting for 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Vinik Asset Management, managed by Jeffrey Vinik, which held a $19 million position; 0.3% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Paul Tudor Jones’s Tudor Investment Corp, Drew Cupps’s Cupps Capital Management and Carl Tiedemann and Michael Tiedemann’s TIG Advisors.
As aggregate interest increased, some big names were leading the bulls’ herd. Tudor Investment Corp, managed by Paul Tudor Jones, initiated the most valuable position in Tumi Holdings Inc (NYSE:TUMI). Tudor Investment Corp had 9 million invested in the company at the end of the quarter. Carl Tiedemann and Michael Tiedemann’s TIG Advisors also made a $2 million investment in the stock during the quarter. The following funds were also among the new TUMI investors: Israel Englander’s Catapult Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Israel Englander’s Millennium Management.
How have insiders been trading Tumi Holdings Inc (NYSE:TUMI)?
Bullish insider trading is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time period, Tumi Holdings Inc (NYSE:TUMI) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Tumi Holdings Inc (NYSE:TUMI). These stocks are Deckers Outdoor Corp (NASDAQ:DECK), Steven Madden, Ltd. (NASDAQ:SHOO), Skechers USA Inc (NYSE:SKX), Iconix Brand Group Inc (NASDAQ:ICON), and Crocs, Inc. (NASDAQ:CROX). All of these stocks are in the textile – apparel footwear & accessories industry and their market caps match TUMI’s market cap.