Hanesbrands Inc. (HBI) Plunges 11% Following Mixed Earnings Report, Hack Attack

What have hedge funds been doing with Hanesbrands Inc. (NYSE:HBI)?

According to Insider Monkey’s hedge fund database, Chieftain Capital, managed by John Shapiro, holds the largest position in Hanesbrands Inc. (NYSE:HBI) with around 6.93 million shares valued at $232.1 million, comprising 12.7% of its 13F portfolio at the end of March. On Chieftain Capital’s heels is Scopus Asset Management, led by Alexander Mitchell, holding around 3.75 million shares worth $125.7 million; the fund has 2.5% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish consist of Phill Gross and Robert Atchinson‘s Adage Capital Management, David Harding’s Winton Capital Management, and Ken Griffin‘s Citadel Investment Group.

Due to the fact that Hanesbrands Inc. (NYSE:HBI) has faced a declination in interest from the aggregate hedge fund industry, logic holds that there were a few funds that decided to sell off their positions entirely heading into the second quarter. Interestingly, Robert Bishop‘s Impala Asset Management cut the largest stake, as it sold all of its 763,067 shares during the first trimester. Ross Margolies’ fund, Stelliam Investment Management, also dropped its 502,500 shares during the same period. These moves are intriguing to say the least, as total hedge fund interest fell by two funds heading into the second quarter.

Overall, smart money was bearish as top hedge fund managers like Robert Bishop opted to say good bye to this stock during the first three months of the year. Top executives of the company also decided to unload a lot of shares during the same period. The mixed second quarter earnings did not help the stock, while the data breach just piled on more misery for its shares. Considering the bearish hedge fund sentiment, we don’t recommend a long position at this time.

Disclosure: None