The Gap Inc. (GPS)’s 7 Most Bullish Money Managers

Page 1 of 8

The Gap Inc. (NYSE:GPS) has experienced a decrease in enthusiasm from smart money recently.

If you’d ask most shareholders, hedge funds are viewed as slow, outdated financial vehicles of yesteryear. While there are greater than 8000 funds in operation today, we look at the moguls of this club, about 450 funds. It is estimated that this group oversees the majority of the hedge fund industry’s total asset base, and by keeping an eye on their best investments, we have identified a number of investment strategies that have historically beaten 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 began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (see the details here).

The Gap Inc. (NYSE:GPS)

Equally as important, positive insider trading sentiment is another way to parse down the world of equities. There are many reasons for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the useful potential of this strategy if investors know what to do (learn more here).

Consequently, it’s important to take a peek at the latest action encompassing The Gap Inc. (NYSE:GPS).

What does the smart money think about The Gap Inc. (NYSE:GPS)?

In preparation for this year, a total of 29 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings considerably.

Of the funds we track, Stephen Mandel’s Lone Pine Capital had the biggest position in The Gap Inc. (NYSE:GPS), worth close to $575.1 million, comprising 3.6% of its total 13F portfolio. Sitting at the No. 2 spot is Edward Lampert of ESL Investments, with a $444.5 million position; the fund has 11.6% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, Jim Simons’s Renaissance Technologies and Jean-Marie Eveillard’s First Eagle Investment Management.

Due to the fact that The Gap Inc. (NYSE:GPS) has experienced a declination in interest from hedge fund managers, logic holds that there exists a select few funds who sold off their positions entirely last quarter. Intriguingly, Donald Chiboucis’s Columbus Circle Investors dropped the largest stake of the “upper crust” of funds we key on, valued at an estimated $67.4 million in stock.. Panayotis æTakisÆ Sparaggis’s fund, Alkeon Capital Management, also cut its stock, about $58.6 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading The Gap Inc. (NYSE:GPS)?

Insider buying is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, The Gap Inc. (NYSE:GPS) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to The Gap Inc. (NYSE:GPS). These stocks are Urban Outfitters, Inc. (NASDAQ:URBN), Nordstrom, Inc. (NYSE:JWN), Michael Kors Holdings Ltd (NYSE:KORS), Limited Brands, Inc. (NYSE:LTD), and Ross Stores, Inc. (NASDAQ:ROST). This group of stocks are in the apparel stores industry and their market caps match GPS’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Urban Outfitters, Inc. (NASDAQ:URBN) 25 0 5
Nordstrom, Inc. (NYSE:JWN) 26 0 6
Michael Kors Holdings Ltd (NYSE:KORS) 39 0 0
Limited Brands, Inc. (NYSE:LTD) 19 0 0
Ross Stores, Inc. (NASDAQ:ROST) 30 0 6

With the results exhibited by Insider Monkey’s research, everyday investors should always monitor hedge fund and insider trading sentiment, and The Gap Inc. (NYSE:GPS) shareholders fit into this picture quite nicely.

See the 7 most bullish money managers:

Page 1 of 8
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 Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

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!