Should You Avoid Ralph Lauren Corp (RL)?

Page 1 of 2

Is Ralph Lauren Corp (NYSE:RL) a buy at these levels?

Now, according to many investors, hedge funds are perceived as delayed, old investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation today, Insider Monkey looks at the bigwigs of this group, around 525 funds. It is widely held that this group has its hands on most of the smart money’s total capital, and by tracking their best stock picks, we’ve formulated a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Just as useful, positive insider trading activity is a second way to analyze the marketplace. Just as you’d expect, there are lots of motivations for an insider to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).

Now that that’s out of the way, it’s important to examine the newest info about Ralph Lauren Corp (NYSE:RL).

Ralph Lauren (RL)

How have hedgies been trading Ralph Lauren Corp (NYSE:RL)?

In preparation for the third quarter, a total of 31 of the hedge funds we track held long positions in this stock, a change of -9% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.

#N/A

Because Ralph Lauren Corp (NYSE:RL) has experienced a fall in interest from the top-tier hedge fund industry, we can see that there were a few fund managers who were dropping their full holdings at the end of the second quarter. Intriguingly, Bain Capital’s Brookside Capital dropped the largest investment of the “upper crust” of funds we key on, worth close to $144.5 million in call options., and Alexander Mitchell of Scopus Asset Management was right behind this move, as the fund dropped about $38.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds at the end of the second quarter.

How have insiders been trading Ralph Lauren Corp (NYSE:RL)?

Insider buying made by high-level executives is best served when the company we’re looking at has experienced transactions within the past six months. Over the latest 180-day time frame, Ralph Lauren Corp (NYSE:RL) 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 Ralph Lauren Corp (NYSE:RL). These stocks are Gildan Activewear Inc (USA) (NYSE:GIL), Under Armour Inc (NYSE:UA), Lululemon Athletica inc. (NASDAQ:LULU), PVH Corp (NYSE:PVH), and V.F. Corporation (NYSE:VFC). This group of stocks are the members of the textile – apparel clothing industry and their market caps are similar to RL’s market cap.

Page 1 of 2
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

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!