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Hedge Funds Are Buying Tumi Holdings Inc (TUMI)

As industrywide interest jumped, some big names were breaking ground themselves. Lee Munder Capital Group, managed by Lee Munder, assembled the biggest position in Tumi Holdings Inc (NYSE:TUMI). According to its latest 13F filing, the fund had $3.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.9 million position during the quarter. The following funds were also among the new TUMI investors: Benjamin A. Smith’s Laurion Capital Management and George Hall’s Clinton Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tumi Holdings Inc (NYSE:TUMI) but similarly valued. These stocks are Penumbra Inc (NYSE:PEN), Sonic Corporation (NASDAQ:SONC), Apollo Education Group Inc (NASDAQ:APOL), and Cott Corporation (USA) (NYSE:COT). This group of stocks’ market values are closest to TUMI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PEN 13 91595 13
SONC 30 204992 6
APOL 25 324765 -2
COT 23 256133 4

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $219 million. TUMI only managed to attract $106 million from hedge funds. Sonic Corporation (NASDAQ:SONC) is the most popular stock in this table, while Penumbra Inc (NYSE:PEN) is the laggard with only 13 bullish hedge fund positions. Tumi Holdings Inc (NYSE:TUMI) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SONC might be a better candidate to consider a long position.

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