Hedge Funds Aren’t Crazy About DSW Inc. (DSW) Anymore

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Since DSW Inc. (NYSE:DSW) has witnessed a falling interest from the smart money, we can see that there exists a select few funds that slashed their positions entirely in the third quarter. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management cut the biggest position of the 700 funds watched by Insider Monkey, comprising about $79.5 million in stock. Alexander Mitchell’s fund, Scopus Asset Management, also dumped its stock, about $31.8 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 7 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to DSW Inc. (NYSE:DSW). These stocks are INC Research Holdings Inc (NASDAQ:INCR), Steelcase Inc. (NYSE:SCS), Dril-Quip, Inc. (NYSE:DRQ), and Companhia Paranaense de Energia (ADR) (NYSE:ELP). This group of stocks’ market values are similar to DSW Inc. (NYSE:DSW)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
INCR 25 208713 6
SCS 18 81789 2
DRQ 17 95756 0
ELP 5 6153 -2

As you can see, these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $98 million. That figure was $292 million in DSW Inc. (NYSE:DSW)’s case. INC Research Holdings Inc (NASDAQ:INCR) is the most popular stock in this table. On the other hand, Companhia Paranaense de Energia (ADR) (NYSE:ELP) is the least popular one with only 5 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.

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