Is Nordstrom, Inc. (NYSE:JWN) Going to Burn These Hedge Funds?

Nordstrom, Inc. (NYSE:JWN) was in 26 hedge funds’ portfolio at the end of December. JWN investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 30 hedge funds in our database with JWN holdings at the end of the previous quarter.

In today’s marketplace, there are plenty of indicators market participants can use to analyze the equity markets. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform the S&P 500 by a significant amount (see just how much).

Nordstrom, Inc. (NYSE:JWN)

Just as integral, positive insider trading sentiment is a second way to parse down the marketplace. There are lots of incentives for an insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this method if investors understand where to look (learn more here).

Consequently, we’re going to take a look at the recent action regarding Nordstrom, Inc. (NYSE:JWN).

What have hedge funds been doing with Nordstrom, Inc. (NYSE:JWN)?

At year’s end, a total of 26 of the hedge funds we track were long in this stock, a change of -13% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, Maverick Capital, managed by Lee Ainslie, holds the biggest position in Nordstrom, Inc. (NYSE:JWN). Maverick Capital has a $69 million billion position in the stock, comprising 1% of its 13F portfolio. Coming in second is Ken Griffin of Citadel Investment Group, with a $51 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include John W. Rogers’s Ariel Investments, John Overdeck and David Siegel’s Two Sigma Advisors and Steven Cohen’s SAC Capital Advisors.

Because Nordstrom, Inc. (NYSE:JWN) has experienced declining sentiment from the smart money, it’s easy to see that there exists a select few money managers who sold off their positions entirely at the end of the year. It’s worth mentioning that SAC Subsidiary’s Sigma Capital Management said goodbye to the largest stake of all the hedgies we track, totaling an estimated $46 million in stock.. Ken Heebner’s fund, Capital Growth Management, also cut its stock, about $28 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds at the end of the year.

What have insiders been doing with Nordstrom, Inc. (NYSE:JWN)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past half-year. Over the last 180-day time frame, Nordstrom, Inc. (NYSE:JWN) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned studies, retail investors must always keep an eye on hedge fund and insider trading activity, and Nordstrom, Inc. (NYSE:JWN) 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

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

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!