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Hedge Funds Goosing Up Their Canada Goose Holdings Inc. (GOOS) Bets

In this article you are going to find out whether hedge funds think Canada Goose Holdings Inc. (NYSE:GOOS) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Canada Goose Holdings Inc. (NYSE:GOOS) investors should pay attention to an increase in support from the world’s most elite money managers lately. Our calculations also showed that GOOS isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

Today there are numerous tools shareholders use to analyze their stock investments. Two of the best tools are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the elite investment managers can outclass the market by a very impressive amount (see the details here).

Bill Miller

Bill Miller of Miller Value Partners

We leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like these. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now let’s take a look at the fresh hedge fund action surrounding Canada Goose Holdings Inc. (NYSE:GOOS).

Hedge fund activity in Canada Goose Holdings Inc. (NYSE:GOOS)

At Q1’s end, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 30% from the previous quarter. The graph below displays the number of hedge funds with bullish position in GOOS over the last 18 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).

Among these funds, Select Equity Group held the most valuable stake in Canada Goose Holdings Inc. (NYSE:GOOS), which was worth $72.8 million at the end of the third quarter. On the second spot was Tiger Pacific Capital which amassed $32.1 million worth of shares. Viking Global, Citadel Investment Group, and Miller Value Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Tiger Pacific Capital allocated the biggest weight to Canada Goose Holdings Inc. (NYSE:GOOS), around 10.08% of its 13F portfolio. Ancient Art (Teton Capital) is also relatively very bullish on the stock, setting aside 1.78 percent of its 13F equity portfolio to GOOS.

Now, key hedge funds were leading the bulls’ herd. Tiger Pacific Capital, managed by Run Ye, Junji Takegami and Hoyon Hwang, assembled the most outsized position in Canada Goose Holdings Inc. (NYSE:GOOS). Tiger Pacific Capital had $32.1 million invested in the company at the end of the quarter. Bill Miller’s Miller Value Partners also made a $18 million investment in the stock during the quarter. The following funds were also among the new GOOS investors: Quincy Lee’s Ancient Art (Teton Capital), Kerr Neilson’s Platinum Asset Management, and Daniel S. Och’s OZ Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Canada Goose Holdings Inc. (NYSE:GOOS) but similarly valued. These stocks are Banner Corporation (NASDAQ:BANR), Harmony Gold Mining Company Limited (NYSE:HMY), National Research Corporation (NASDAQ:NRC), and Uniti Group Inc. (NASDAQ:UNIT). All of these stocks’ market caps match GOOS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BANR 15 54121 3
HMY 9 39467 -3
NRC 8 41203 -1
UNIT 13 73283 -2
Average 11.25 52019 -0.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $52 million. That figure was $221 million in GOOS’s case. Banner Corporation (NASDAQ:BANR) is the most popular stock in this table. On the other hand National Research Corporation (NASDAQ:NRC) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Canada Goose Holdings Inc. (NYSE:GOOS) is more popular among hedge funds. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 8.3% in 2020 through the end of May and still beat the market by 13.2 percentage points. Unfortunately GOOS wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on GOOS were disappointed as the stock returned -1.9% during the second quarter (through the end of May) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.

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Disclosure: None. This article was originally published at Insider Monkey.