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Movado Group, Inc (MOV): Hedge Funds Are Bearish and Insiders Are Undecided, What Should You Do?

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In the eyes of many of your fellow readers, hedge funds are perceived as bloated, old investment tools of a period lost to current times. Although there are In excess of 8,000 hedge funds trading currently, this site looks at the masters of this group, close to 525 funds. It is widely held that this group controls the lion’s share of all hedge funds’ total capital, and by keeping an eye on their best picks, we’ve figured out a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).

Just as necessary, bullish insider trading sentiment is another way to analyze the financial markets. As the old adage goes: there are plenty of incentives for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would buy. Many academic studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).

Thus, let’s discuss the latest info for Movado Group, Inc (NYSE:MOV).

What have hedge funds been doing with Movado Group, Inc (NYSE:MOV)?

At Q2’s end, a total of 23 of the hedge funds we track held long positions in this stock, a change of -4% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.

Movado Group, Inc (NYSE:MOV)According to our 13F database, Steven Cohen’s SAC Capital Advisors had the biggest position in Movado Group, Inc (NYSE:MOV), worth close to $31.5 million, comprising 0.2% of its total 13F portfolio. Coming in second is Sigma Capital Management, managed by SAC Subsidiary, which held a $27.6 million position; 1.3% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Alexander Mitchell’s Scopus Asset Management, Richard Driehaus’s Driehaus Capital and Cliff Asness’s AQR Capital Management.

Because Movado Group, Inc (NYSE:MOV) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there were a few funds that slashed their positions entirely heading into Q2. At the top of the heap, Drew Cupps’s Cupps Capital Management said goodbye to the largest stake of the “upper crust” of funds we monitor, valued at about $5.5 million in stock. Malcolm Fairbairn’s fund, Ascend Capital, also sold off its stock, about $0.8 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds heading into Q2.

What have insiders been doing with Movado Group, Inc (NYSE:MOV)?

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past 180 days. Over the last half-year time period, Movado Group, Inc (NYSE:MOV) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Movado Group, Inc (NYSE:MOV). These stocks are A.T. Cross Company (NASDAQ:ATX), Brunswick Corporation (NYSE:BC), Manchester United PLC (NYSE:MANU), Steinway Musical Instruments Inc (NYSE:LVB), and SHFL entertainment Inc (NASDAQ:SHFL). This group of stocks are the members of the recreational goods, other industry and their market caps are closest to MOV’s market cap.

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