Should You Buy Children’s Place Retail Stores, Inc. (NASDAQ:PLCE)?

Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) was in 18 hedge funds’ portfolio at the end of December. PLCE shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. There were 11 hedge funds in our database with PLCE holdings at the end of the previous quarter.

Children's Place Retail Stores, Inc. (NASDAQ:PLCE)

If you’d ask most traders, hedge funds are viewed as unimportant, outdated financial tools of yesteryear. While there are greater than 8000 funds with their doors open at present, we choose to focus on the top tier of this club, about 450 funds. It is estimated that this group controls the lion’s share of all hedge funds’ total asset base, and by watching their highest performing equity investments, we have determined a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year 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 outclassed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Equally as integral, positive insider trading activity is a second way to parse down the stock market universe. Obviously, there are lots of incentives for an executive to get rid of shares of his or her company, but only one, very simple reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this strategy if you understand where to look (learn more here).

Now, let’s take a gander at the recent action surrounding Children’s Place Retail Stores, Inc. (NASDAQ:PLCE).

What have hedge funds been doing with Children’s Place Retail Stores, Inc. (NASDAQ:PLCE)?

Heading into 2013, a total of 18 of the hedge funds we track held long positions in this stock, a change of 64% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings substantially.

Of the funds we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Children’s Place Retail Stores, Inc. (NASDAQ:PLCE). Adage Capital Management has a $97 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $66 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management and Steven Cohen’s SAC Capital Advisors.

As one would reasonably expect, key hedge funds were breaking ground themselves. Millennium Management, managed by Israel Englander, created the biggest position in Children’s Place Retail Stores, Inc. (NASDAQ:PLCE). Millennium Management had 12 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $9 million position during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Joel Greenblatt’s Gotham Asset Management, and Dmitry Balyasny’s Balyasny Asset Management.

What have insiders been doing with Children’s Place Retail Stores, Inc. (NASDAQ:PLCE)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past half-year. Over the last six-month time frame, Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) has seen 1 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

With the results shown by Insider Monkey’s time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) 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.

blog comments powered by Disqus
Insider Monkey Headlines
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

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

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!