Here is What Hedge Funds Think About Michael Kors Holdings Ltd (KORS)

Since Michael Kors Holdings Ltd (NYSE:KORS) has faced bearish sentiment from hedge fund managers, logic holds that there was a specific group of hedge funds who sold off their full holdings heading into Q4. Interestingly, Brian Jackelow’s SAB Capital Management dumped the biggest stake of the “upper crust” of funds followed by Insider Monkey, comprising roughly $48 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dropped about $41.5 million worth of KORS shares. These transactions are interesting, as aggregate hedge fund interest dropped by 9 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to Michael Kors Holdings Ltd (NYSE:KORS). These stocks are Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ), Towers Watson & Co (NYSE:TW), JetBlue Airways Corporation (NASDAQ:JBLU), and SCANA Corporation (NYSE:SCG). This group of stocks’ market values are similar to KORS’s market value.

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $624 million. That figure was $973 million in KORS’s case. Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) is the most popular stock in this table. On the other hand SCANA Corporation (NYSE:SCG) is the least popular one with only 12 bullish hedge fund positions. Michael Kors Holdings Ltd (NYSE:KORS) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard JAZZ might be a better candidate to consider a long position.