5 Retailers Hedge Funds Are Bailing On As Inflation Soars

4. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Shareholders: 38

There were 33% fewer hedge fund shareholders of AutoZone, Inc. (NYSE:AZO) on March 31 than there were in the middle of 2020, which included a 17% drop during Q1 of this year. Billionaires Ken Fisher of Fisher Asset Management and Paul Tudor Jones of Tudor Investment Corp sold off AZO during the latest reported quarter.

AutoZone, Inc. (NYSE:AZO) is one of the few retailers that could outperform during a recession, having done so in 2008/2009. Rather than take their cars in for expensive repairs during lean economic periods, car owners increasingly opt to undertake car maintenance tasks themselves, which is where AutoZone’s bevy of free services and tool rentals come in handy. And AutoZone clearly isn’t wilting under the pressure of a potential recession, as the company plans to open more distribution hubs in Q3 which will pave the way for another 200 store openings.

Altron Capital Management likes AutoZone, Inc. (NYSE:AZO)’s potential in a country of aging automobiles, as detailed in its Q4 2021 investor letter:

“AutoZone has been a winner since we built a position in the company last quarter. Given the current supply challenges in the automotive sector, we believe the long-standing trend of America’s aging automotive fleet will continue for the foreseeable future with AutoZone as a primary beneficiary.”