DSW Inc. (DSW) Sinking on Earnings Miss, Weak Guidance

As industrywide interest in DSW jumped during Q1, specific money managers led the charge into the stock. Millennium Management created the largest position in DSW Inc. (NYSE:DSW). Millennium Management had $17 million invested in the company at the end of the quarter. Neil Chriss’ Hutchin Hill Capital also made a $4.9 million investment in the stock during the quarter. The other funds with brand new DSW positions are Richard Schimel’s Sterling Ridge Capital Management, Benjamin A. Smith’s Laurion Capital Management, and Zeke Ashton’s Centaur Capital Partners.

Let’s now review hedge fund activity in other stocks similar to DSW Inc. (NYSE:DSW). These stocks are Eldorado Gold Corp (USA) (NYSE:EGO), Five Below Inc (NASDAQ:FIVE), Cathay General Bancorp (NASDAQ:CATY), and Worthington Industries, Inc. (NYSE:WOR). This group of stocks’ market valuations are closest to DSW’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $296 million in DSW’s case. Eldorado Gold Corp (USA) (NYSE:EGO) is the most popular stock in this table. On the other hand Cathay General Bancorp (NASDAQ:CATY) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks DSW Inc. (NYSE:DSW) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio on the dip today.

Disclosure: None