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Do Hedge Funds Love Michael Kors Holdings Ltd (KORS)?

As one would reasonably expect, key hedge funds have jumped into Michael Kors Holdings Ltd (NYSE:KORS) headfirst. MIK Capital, managed by Kamyar Khajavi, assembled the most outsized position in Michael Kors Holdings Ltd (NYSE:KORS). According to regulatory filings, the fund had $41.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $12.2 million investment in the stock during the quarter. The following funds were also among the new KORS investors: D. E. Shaw’s D E Shaw, David Keidan’s Buckingham Capital Management, and David Harding’s Winton Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Michael Kors Holdings Ltd (NYSE:KORS) but similarly valued. These stocks are Amdocs Limited (NYSE:DOX), Cemex SAB de CV (ADR) (NYSE:CX), Juniper Networks, Inc. (NYSE:JNPR), and CDK Global Inc (NASDAQ:CDK). This group of stocks’ market valuations are closest to KORS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DOX 24 602590 4
CX 24 532753 5
JNPR 27 477518 0
CDK 42 2747540 -3

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.09 billion. That figure was just $584 million in KORS’s case. CDK Global Inc (NASDAQ:CDK) is the most popular stock in this table. On the other hand Amdocs Limited (NYSE:DOX) is the least popular one with only 24 bullish hedge fund positions. Michael Kors Holdings Ltd (NYSE:KORS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CDK might be a better candidate to consider a long position.

Disclosure: none.

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