Is Caleres Inc (CAL) Going to Burn These Hedge Funds?

Since Caleres Inc (NYSE:CAL) has faced a bearish sentiment from hedge fund managers, it’s easy to see that there is a sect of hedge funds that elected to cut their entire stakes in the third quarter. Interestingly, John Overdeck and David Siegel’s Two Sigma Advisors sold off the largest position of all the hedgies monitored by Insider Monkey, totaling an estimated $2.5 million in stock. Paul Tudor Jones’s fund, Tudor Investment Corp, also dropped its stock, about $0.5 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Caleres Inc (NYSE:CAL) but similarly valued. We will take a look at FibroGen Inc (NASDAQ:FGEN), Halyard Health Inc (NYSE:HYH), Hub Group Inc (NASDAQ:HUBG), and MannKind Corporation (NASDAQ:MNKD). This group of stocks’ market caps is closest to Caleres Inc (NYSE:CAL)’s market cap.

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $136 million. That figure was $73 million in Caleres Inc (NYSE:CAL)’s case. FibroGen Inc (NASDAQ:FGEN) is the most popular stock in this table. On the other hand, MannKind Corporation (NASDAQ:MNKD) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, Caleres Inc (NYSE:CAL) 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.