Is Urban Outfitters, Inc. (NASDAQ:URBN) Going to Burn These Hedge Funds?

Urban Outfitters, Inc. (NASDAQ:URBN) was in 25 hedge funds’ portfolio at the end of December. URBN investors should pay attention to an increase in enthusiasm from smart money in recent months. There were 15 hedge funds in our database with URBN positions at the end of the previous quarter.

In the financial world, there are many indicators market participants can use to track the equity markets. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can beat their index-focused peers by a solid margin (see just how much).

Urban Outfitters, Inc. (NASDAQ:URBN)Just as integral, bullish insider trading activity is another way to break down the investments you’re interested in. Obviously, there are many incentives for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this strategy if “monkeys” know what to do (learn more here).

Keeping this in mind, it’s important to take a glance at the key action surrounding Urban Outfitters, Inc. (NASDAQ:URBN).

What does the smart money think about Urban Outfitters, Inc. (NASDAQ:URBN)?

At the end of the fourth quarter, a total of 25 of the hedge funds we track held long positions in this stock, a change of 67% 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 increasing their stakes considerably.

Of the funds we track, SAC Capital Advisors, managed by Steven Cohen, holds the largest position in Urban Outfitters, Inc. (NASDAQ:URBN). SAC Capital Advisors has a $119 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second is Phill Gross and Robert Atchinson of Adage Capital Management, with a $115 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Donald Chiboucis’s Columbus Circle Investors, Ken Griffin’s Citadel Investment Group and SAC Subsidiary’s Sigma Capital Management.

Now, some big names have been driving this bullishness. Sigma Capital Management, managed by SAC Subsidiary, initiated the largest position in Urban Outfitters, Inc. (NASDAQ:URBN). Sigma Capital Management had 33 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also initiated a $20 million position during the quarter. The other funds with new positions in the stock are Alexander Mitchell’s Scopus Asset Management, Jacob Gottlieb’s Visium Asset Management, and Cliff Asness’s AQR Capital Management.

How are insiders trading Urban Outfitters, Inc. (NASDAQ:URBN)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Urban Outfitters, Inc. (NASDAQ:URBN) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading activity, and Urban Outfitters, Inc. (NASDAQ:URBN) is an important part of this process.

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

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

The 10 Cheapest Places to Retire Abroad

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!