Why Is Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)’s Stock Advancing Today?

How are hedge funds trading Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)?

According to the latest round of 13F filings, Lone Pine Capital, managed by Stephen Mandel, holds the biggest position in Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), valued at $535.2 million at the end of September, and comprising 2.2% of its 13F portfolio. Coming in second is Clifford Fox’s Columbus Circle Investors, with a $255.5 million position. Other professional money managers that are bullish comprise John Griffin’s Blue Ridge Capital, Bain Capital’s Brookside Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

On the other hand, Gabriel Plotkin’s Melvin Capital Management and Charles Anderson’s Fox Point Capital Management unloaded their positions between July and September, previously holding stakes valued at $46.3 million and $7.7 million, respectively.

Moreover, let’s also examine hedge fund activity in other stocks with market caps close to to Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)’s. These stocks are Marathon Oil Corporation (NYSE:MRO), Xerox Corporation (NYSE:XRX), Textron Inc. (NYSE:TXT), and MGM Resorts International (NYSE:MGM).

As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $895 million. Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) registers a higher aggregate value of holdings, but its popularity is below average. This could suggest that the funds from our database are not very fond of the stock, compared to its market cap peers, or maybe they are not very bullish on the whole industry. In any case ULTA might represent an interesting investment and is worth your attention.