Hedge Funds Are Selling Coach Inc (COH)

Because Coach Inc (NYSE:COH) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of hedge funds that elected to cut their full holdings in the third quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management sold off the largest investment of all the hedgies followed by Insider Monkey, totaling about $89.4 million in stock, and Josh Resnick’s Jericho Capital Asset Management was right behind this move, as the fund dropped about $67.2 million worth of COH shares. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Coach Inc (NYSE:COH). We will take a look at BRF Brasil Foods SA (ADR) (NYSE:BRFS), Cimarex Energy Co (NYSE:XEC), L-3 Communications Holdings, Inc. (NYSE:LLL), and Linear Technology Corporation (NASDAQ:LLTC). This group of stocks’ market values are similar to COH’s market value.

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 $1.05 billion. That figure was just $221 million in COH’s case. Cimarex Energy Co (NYSE:XEC) is the most popular stock in this table. On the other hand BRF Brasil Foods SA (ADR) (NYSE:BRFS) is the least popular one with only 8 bullish hedge fund positions. Coach Inc (NYSE:COH) 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 XEC might be a better candidate to consider a long position.

Disclosure: none.