3. Ralph Lauren Corp (NYSE:RL)
Investors with Long Positions (as of June 30): 28
Aggregate Value of Investors’ Holdings (as of June 30): $610.63 Million
Ralph Lauren Corp (NYSE:RL)’s popularity among hedge funds has also dwindled since the end of March, when 35 firms had investments totaling some $670.57 million in the company. The stock has been hammered this year, falling by more than 40%. However, the $9.52 billion clothing and accessories’ manufacturer’s financial results for the first fiscal quarter that ended in June were positive, with Ralph Lauren Corp (NYSE:RL) beating both the top and bottom line estimates of analysts, thus the time might be right to jump into the company at a bargain price. To that point, the stock is currently trading at a forward earnings multiple of just 14. Cliff Asness‘ AQR Capital Management, the top Ralph Lauren Corp (NYSE:RL) stockholder in our database, increased its stake by 183% during the second quarter to 847,400 shares valued at $112.16 million.
2. VF Corp (NYSE:VFC)
Investors with Long Positions (as of June 30): 36
Aggregate Value of Investors’ Holdings (as of June 30): $1.13 Billion
Even though VF Corp (NYSE:VFC)’s stock is down by more than 5% so far this year, the company has attracted significant attention from hedge funds, as only 30 firms had a total investment of $758.09 million in the company at the end of the first quarter. The company operates under three main brands: Northface, Timberland, and Wrangler. Although gross and operating margins dropped slightly in the second quarter on a year-over-year basis, mostly due to adverse currency movements, the company recently revised upwards its adjusted EPS guidance for the current fiscal year. Ric Dillon‘s Diamond Hill Capital, a leading shareholder of VF Corp (NYSE:VFC), increased its holding in the company by 12% during the second quarter to 3.18 million shares.
1. Michael Kors Holdings Ltd (NYSE:KORS)
Investors with Long Positions (as of June 30): 39
Aggregate Value of Investors’ Holdings (as of June 30): $1.03 Billion
The $8.41 billion luxury brand company has seen its stock price slump by more than 43% year-to-date, while hedge fund interest dropped from 40 firms with total holdings valued at $1.90 billion at the end of March. Given Michael Kors Holdings Ltd (NYSE:KORS)’s low forward earnings multiple of 9.43 and its management’s plan to expand its base in Europe and Japan, the stock has considerable upside potential. Ricky Sandler‘s Eminence Capital is particularly bullish on Michael Kors Holdings Ltd (NYSE:KORS), having raised its stake by 240% in the June trimester to more than 4.54 million shares.
Disclosure: None
