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Wolverine World Wide, Inc. (WWW): Are Hedge Funds Right About This Stock? – Iconix Brand Group Inc (ICON), Steven Madden, Ltd. (SHOO)

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Wolverine World Wide, Inc. (NYSE:WWW) was in 9 hedge funds’ portfolio at the end of December. WWW investors should pay attention to an increase in activity from the world’s largest hedge funds recently. There were 8 hedge funds in our database with WWW positions at the end of the previous quarter.

Wolverine World Wide, Inc. (NYSE:WWW)

According to most traders, hedge funds are perceived as underperforming, old investment vehicles of yesteryear. While there are more than 8000 funds with their doors open at the moment, we choose to focus on the moguls of this club, close to 450 funds. It is widely believed that this group controls most of the hedge fund industry’s total asset base, and by keeping an eye on their top investments, we have revealed a number of investment strategies that have historically outperformed the market. 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 started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 24 percentage points in 7 months (see the details here).

Equally as key, bullish insider trading activity is another way to break down the investments you’re interested in. Just as you’d expect, there are lots of reasons for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this strategy if you understand where to look (learn more here).

With all of this in mind, it’s important to take a peek at the latest action encompassing Wolverine World Wide, Inc. (NYSE:WWW).

What have hedge funds been doing with Wolverine World Wide, Inc. (NYSE:WWW)?

Heading into 2013, a total of 9 of the hedge funds we track held long positions in this stock, a change of 13% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.

According to our comprehensive database, Select Equity Group, managed by Robert Joseph Caruso, holds the biggest position in Wolverine World Wide, Inc. (NYSE:WWW). Select Equity Group has a $153 million position in the stock, comprising 2.4% of its 13F portfolio. On Select Equity Group’s heels is Millennium Management, managed by Israel Englander, which held a $8 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Chuck Royce’s Royce & Associates, Mario Gabelli’s GAMCO Investors and Cliff Asness’s AQR Capital Management.

As one would reasonably expect, some big names have jumped into Wolverine World Wide, Inc. (NYSE:WWW) headfirst. Millennium Management, managed by Israel Englander, created the most outsized position in Wolverine World Wide, Inc. (NYSE:WWW). Millennium Management had 8 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also initiated a $1 million position during the quarter. The only other fund with a new position in the stock is David Harding’s Winton Capital Management.

What do corporate executives and insiders think about Wolverine World Wide, Inc. (NYSE:WWW)?

Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past six months. Over the last 180-day time frame, Wolverine World Wide, Inc. (NYSE:WWW) has seen zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Wolverine World Wide, Inc. (NYSE:WWW). These stocks are Crocs, Inc. (NASDAQ:CROX), Tumi Holdings Inc (NYSE:TUMI), Iconix Brand Group Inc (NASDAQ:ICON), Steven Madden, Ltd. (NASDAQ:SHOO), and Deckers Outdoor Corp (NASDAQ:DECK). All of these stocks are in the textile – apparel footwear & accessories industry and their market caps are similar to WWW’s market cap.

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