Is Deckers Outdoor Corp (DECK) Worthy of Your Portfolio?

With a general bullishness amongst the heavyweights, some big names have jumped into Deckers Outdoor Corp (NASDAQ:DECK) headfirst. John Tompkins’ Tyvor Capital initiated the largest position in Deckers Outdoor Corp (NASDAQ:DECK). Tyvor Capital had $7.1 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also initiated a $4.2 million position during the quarter. The following funds were also among the new DECK investors: Ken Griffin’s Citadel Investment Group, Leon Shaulov’s Maplelane Capital, and Noam Gottesman’s GLG Partners.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Deckers Outdoor Corp (NASDAQ:DECK) but similarly valued. We will take a look at Fortress Investment Group LLC (NYSE:FIG), Qunar Cayman Islands Ltd (NASDAQ:QUNR), Abengoa Yield PLC (NASDAQ:ABY), and Grand Canyon Education Inc (NASDAQ:LOPE). This group of stocks’ market valuations are similar to DECK’s market valuation.

As you can see these stocks had an average of 15 funds with bullish positions and the average amount invested in these stocks was $157 million, versus $241 million in DECK’s case. Fortress Investment Group LLC (NYSE:FIG) is the most popular stock in this table. On the other hand Qunar Cayman Islands Ltd (NASDAQ:QUNR) is the least popular one with only seven funds holding shares. Deckers Outdoor Corp (NASDAQ:DECK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Fortress Investment Group LLC (NYSE:FIG) might be a better candidate to consider taking a long position in.

Disclosure: None