Who's buying Foot Locker, Inc. (NYSE:FL)?
In the eyes of many investors, hedge funds are assumed to be delayed, old financial vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds trading in present day, this site looks at the elite of this club, close to 525 funds. It is assumed that this group controls most of the hedge fund industry's total assets, and by watching their highest quality stock picks, we've uncovered a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as key, bullish insider trading activity is a second way to look at the stock market universe. There are many motivations for an executive to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this strategy if "monkeys" know where to look (learn more here).
Now that that's out of the way, we're going to study the newest info about Foot Locker, Inc. (NYSE:FL).
Heading into Q3, a total of 34 of the hedge funds we track were long in this stock, a change of 10% from the previous quarter. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were upping their stakes substantially.
When using filings from the hedgies we track, Natixis Global Asset Management's Harris Associates had the most valuable position in Foot Locker, Inc. (NYSE:FL), worth close to $252.1 million, accounting for 0.5% of its total 13F portfolio. On Harris Associates's heels is Rob Citrone of Discovery Capital Management, with a $144 million position; 1.5% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Patrick McCormack's Tiger Consumer Management, Cliff Asness's AQR Capital Management and Robert Rodriguez and Steven Romick's First Pacific Advisors LLC.
Now, specific money managers have jumped into Foot Locker, Inc. (NYSE:FL) headfirst. Discovery Capital Management, managed by Rob Citrone, assembled the biggest position in Foot Locker, Inc. (NYSE:FL). Discovery Capital Management had 144 million invested in the company at the end of the quarter. Patrick McCormack's Tiger Consumer Management also initiated a $117.6 million position during the quarter. The following funds were also among the new FL investors: Cliff Asness's AQR Capital Management, Robert Rodriguez and Steven Romick's First Pacific Advisors LLC, and Martin D. Sass's MD Sass.
Insider buying is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest half-year time frame, Foot Locker, Inc. (NYSE:FL) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Foot Locker, Inc. (NYSE:FL). These stocks are DSW Inc. (NYSE:DSW), Ascena Retail Group Inc (NASDAQ:ASNA), American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch Co. (NYSE:ANF), and Urban Outfitters, Inc. (NASDAQ:URBN). This group of stocks are in the apparel stores industry and their market caps resemble FL's market cap.