Why are These Stocks Surging Amid Today’s Gloomy Market?

Shareholders of Kohl’s Corporation (NYSE:KSS) must be rather pleased as the stock is currently up by roughly 9% following better-than-expected third quarter results on the back of strong back-to-school sales. The operator of specialty department stores has posted a profit of $120 million or $0.75 per share when adjusted for debt servicing costs, beating Street’s estimates of $0.69 per share. Revenue came in at $4.43 billion, above analysts’ estimates of $4.41 billion.

Kohl’s Corporation (NYSE:KSS)’s popularity among hedge funds has decreased a bit during the second quarter, as the number of funds invested fell to 33 from 37 at the end of March, while their holdings accounted for roughly 5% of the company’s outstanding stock. While Clifford Fox was limiting his exposure to the stock during the second quarter, cutting his stake by 9% to 2.49 million shares, Cliff Asness of AQR Capital Management was buying Kohl’s shares left and right, more than doubling his holding to 978,191 shares.

After plunging by more than 31% yesterday, Eros International plc (NYSE:EROS) has regained some ground as the company is fending off allegations of overstating revenues and the number of movies it has distributed in 2014 and 2015. Block & Leviton LLP, a law firm that represents investors, has reacted quickly and has opened an investigation. Since the company failed to comment in a timely fashion, investors drove the shares lower yesterday. The management of Eros came out today and has branded the allegations as “baseless”, insisting they are based on misleading figures issued by the Indian box office. This reaction seems to have soothed investors, as the stock is currently up by approximately 9%.

Eros International plc (NYSE:EROS) moved up the hedge funds’ pecking order during the second quarter, with 14 top funds holding 5% of the company’s common stock. Jim Simons was among those who decided to step up their interest in the company, increasing his stake to 175,900 shares, while David Forster and Peter Wilton, the managers of Ibis Capital Partners chose to trim their stake by 6% to 1.07 million shares.

Disclosure: none.