Hedge Funds Are Dumping Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) has seen a decrease in hedge fund sentiment in recent months.

In the eyes of most market participants, hedge funds are assumed to be unimportant, outdated financial vehicles of yesteryear. While there are greater than 8000 funds with their doors open at present, we at Insider Monkey look at the crème de la crème of this club, close to 450 funds. It is estimated that this group controls most of the hedge fund industry’s total asset base, and by tracking their highest performing picks, we have formulated a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)Equally as beneficial, optimistic insider trading activity is another way to break down the financial markets. Obviously, there are lots of motivations for an executive to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this method if “monkeys” know what to do (learn more here).

Now, let’s take a gander at the key action surrounding Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA).

How have hedgies been trading Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)?

At year’s end, a total of 26 of the hedge funds we track were long in this stock, a change of -7% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.

According to our comprehensive database, Stephen Mandel’s Lone Pine Capital had the largest position in Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), worth close to $416 million, comprising 2.6% of its total 13F portfolio. Sitting at the No. 2 spot is Brookside Capital, managed by Bain Capital, which held a $174 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Pasco Alfaro / Richard Tumure’s Miura Global Management, Donald Chiboucis’s Columbus Circle Investors and John Lykouretzos’s Hoplite Capital Management.

Judging by the fact that Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) has faced falling interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of fund managers who were dropping their full holdings last quarter. It’s worth mentioning that Douglas Dillard Jr. and Raj D. Venkatesan’s Standard Pacific Capital sold off the largest position of the “upper crust” of funds we track, comprising about $81 million in stock., and Louis Navellier of Navellier & Associates was right behind this move, as the fund dumped about $62 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds last quarter.

What have insiders been doing with Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)?

Insider buying is most useful when the company in question has experienced transactions within the past half-year. Over the latest half-year time frame, Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

With the returns shown by our time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

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!