Hedge Funds Are Buying Macy’s, Inc. (M)

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As one would reasonably expect, specific money managers were leading the bulls’ herd. York Capital Management, managed by James Dinan, initiated the most valuable call position in Macy’s, Inc. (NYSE:M). York Capital Management had $46.9 million invested in the company at the end of the quarter. Craig C. Albert’s Sheffield Asset Management also made a $32.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’ Renaissance Technologies, Paul Singer’s Elliott Management, and Mark Kingdon’s Kingdon Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Macy’s, Inc. (NYSE:M) but similarly valued. These stocks are BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), Hormel Foods Corporation (NYSE:HRL), Sigma-Aldrich Corporation (NASDAQ:SIAL), and Smith & Nephew plc (ADR) (NYSE:SNN). This group of stocks’ market valuations resemble Macy’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BMRN 50 1742311 1
HRL 15 192187 -6
SIAL 34 1572116 -3
SNN 14 158598 -7

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $916 million. That figure was $1.59 billion in Macy’s case. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is the most popular stock in this table with a total of 50 funds reporting long stakes, while Smith & Nephew plc (ADR) (NYSE:SNN) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks, Macy’s, Inc. (NYSE:M) 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.

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