Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Columbia Sportswear Company (NASDAQ:COLM) based on that data.
Is Columbia Sportswear Company (NASDAQ:COLM) a good stock to buy? The stock gave back most of this year’s huge gains in recent months. We’d like to see how hedge funds traded the stock as it started to slide since the end of July. Our calculations show that COLM has experienced an increase in enthusiasm from smart money during the third quarter. This is a good sign. At the end of this article we will also compare COLM to other stocks including Diamondback Energy Inc (NASDAQ:FANG), Teradata Corporation (NYSE:TDC), and Weingarten Realty Investors (NYSE:WRI) to get a better sense of its popularity.
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In the eyes of most investors, hedge funds are perceived as worthless, old financial vehicles of years past. While there are greater than 8000 funds with their doors open at present, Our researchers choose to focus on the crème de la crème of this club, approximately 700 funds. It is estimated that this group of investors shepherd bulk of all hedge funds’ total capital, and by following their top investments, Insider Monkey has come up with a few investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
With all of this in mind, we’re going to take a gander at the fresh action encompassing Columbia Sportswear Company (NASDAQ:COLM).
How have hedgies been trading Columbia Sportswear Company (NASDAQ:COLM)?
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 27% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Chuck Royce’s Royce & Associates has the biggest position in Columbia Sportswear Company (NASDAQ:COLM), worth close to $83.4 million, amounting to 0.4% of its total 13F portfolio. Coming in second is Clifford Fox of Columbus Circle Investors, with a $18.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism consist of D E Shaw, Ed Beddow and William Tichy’s Beddow Capital Management and Robert Joseph Caruso’s Select Equity Group.
As industrywide interest jumped, some big names have jumped into Columbia Sportswear Company (NASDAQ:COLM) headfirst. Columbus Circle Investors, managed by Clifford Fox, created the biggest position in Columbia Sportswear Company (NASDAQ:COLM). Columbus Circle Investors had $18.3 million invested in the company at the end of the quarter. Robert Joseph Caruso’s Select Equity Group also initiated a $6 million position during the quarter. The following funds were also among the new COLM investors: Chao Ku’s Nine Chapters Capital Management, Ray Dalio’s Bridgewater Associates, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s go over hedge fund activity in other stocks similar to Columbia Sportswear Company (NASDAQ:COLM). We will take a look at Diamondback Energy Inc (NASDAQ:FANG), Teradata Corporation (NYSE:TDC), Weingarten Realty Investors (NYSE:WRI), and Visteon Corp (NYSE:VC). This group of stocks’ market caps are similar to COLM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FANG | 38 | 641988 | -8 |
| TDC | 22 | 863642 | -8 |
| WRI | 13 | 58023 | 2 |
| VC | 56 | 1559212 | -1 |
As you can see these stocks had an average of 32.25 hedge funds with bullish positions and the average amount invested in these stocks was $781 million. That figure was $142 million in COLM’s case. Visteon Corp (NYSE:VC) is the most popular stock in this table. On the other hand Weingarten Realty Investors (NYSE:WRI) is the least popular one with only 13 bullish hedge fund positions. Columbia Sportswear Company (NASDAQ:COLM) is not the least popular stock in this group but hedge fund interest is still below average. We like the fact that several hedge funds initiated brand new positions but, overall, hedge funds still don’t think COLM is attractively priced (though we might see a different picture in February). For now we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VC might be a better candidate to consider a long position.
