In today’s marketplace, there are a multitude of metrics market participants can use to track stocks. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can outclass their index-focused peers by a solid amount (see just how much).
Just as useful, positive insider trading activity is another way to analyze the marketplace. Just as you’d expect, there are lots of stimuli for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this strategy if investors understand where to look (learn more here).
Furthermore, let’s examine the latest info surrounding Tumi Holdings Inc (NYSE:TUMI).
What have hedge funds been doing with Tumi Holdings Inc (NYSE:TUMI)?
At the end of the second quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of -35% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully.
Out of the hedge funds we follow, Panayotis Sparaggis’s Alkeon Capital Management had the biggest position in Tumi Holdings Inc (NYSE:TUMI), worth close to $47.6 million, comprising 1.1% of its total 13F portfolio. Sitting at the No. 2 spot is Rob Citrone of Discovery Capital Management, with a $9.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Drew Cupps’s Cupps Capital Management, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.
Since Tumi Holdings Inc (NYSE:TUMI) has experienced a fall in interest from upper-tier hedge fund managers, we can see that there was a specific group of money managers who sold off their positions entirely last quarter. Interestingly, Jeffrey Vinik’s Vinik Asset Management sold off the largest position of all the hedgies we track, valued at close to $5.1 million in stock, and Brian Taylor of Pine River Capital Management was right behind this move, as the fund dropped about $4.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 6 funds last quarter.
How are insiders trading Tumi Holdings Inc (NYSE:TUMI)?
Insider buying made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest 180-day time period, Tumi Holdings Inc (NYSE:TUMI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Tumi Holdings Inc (NYSE:TUMI). These stocks are Deckers Outdoor Corp (NASDAQ:DECK), Steven Madden, Ltd. (NASDAQ:SHOO), Skechers USA Inc (NYSE:SKX), Iconix Brand Group Inc (NASDAQ:ICON), and Crocs, Inc. (NASDAQ:CROX). This group of stocks are in the textile – apparel footwear & accessories industry and their market caps resemble TUMI’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Deckers Outdoor Corp (NASDAQ:DECK)||25||0||0|
|Steven Madden, Ltd. (NASDAQ:SHOO)||15||0||0|
|Skechers USA Inc (NYSE:SKX)||18||0||0|
|Iconix Brand Group Inc (NASDAQ:ICON)||8||0||0|
|Crocs, Inc. (NASDAQ:CROX)||20||0||0|
Using the returns demonstrated by our strategies, average investors must always pay attention to hedge fund and insider trading activity, and Tumi Holdings Inc (NYSE:TUMI) applies perfectly to this mantra.