Coach, Inc. (COH) Jumps On Q4 Beat; Hedge Funds Were Bearish

Hedge fund activity in Coach, Inc. (NYSE:COH)

Of the funds tracked by Insider Monkey, John W. Rogers’ Ariel Investments held the largest stake in Coach, Inc. (NYSE:COH) by the end of the first quarter, owning 1.01 million shares valued at about $41.99 million. Closely in second place is David Harding’s Winton Capital Management with 1 million shares worth about $41.5 million. In the third place is Melvin Capital Management, led by Gabriel Plotkin, holding a $22.8 million position in 550,000 shares. Some other smart money peers that are bullish, encompass Glenn Russell Dubin’s Highbridge Capital Management, Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital and Cliff Asness’ AQR Capital Management.

Seeing as Coach, Inc. (NYSE:COH) has witnessed declining sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of funds who were dropping their positions entirely last quarter. Intriguingly, Matt Sirovich and Jeremy Mindich’s Scopia Capital cut the largest investment of the 700 funds watched by Insider Monkey, dropping call options underlying some 2.48 million shares it bought just in the fourth quarter. David Costen Haley’s fund, HBK Investments, also cut its position in call options equal to 600,000 shares.

Despite the gains made by the stock today because of its beat for the fourth quarter, the bearish sentiment of hedge funds on the stock make us not recommend a long position in Coach, Inc. (NYSE:COH).

Disclosure: None