Maidenform Brands, Inc. (NYSE:MFB) was in 8 hedge funds’ portfolio at the end of December. MFB investors should be aware of an increase in hedge fund sentiment lately. There were 6 hedge funds in our database with MFB holdings at the end of the previous quarter.
In the eyes of most shareholders, hedge funds are perceived as unimportant, outdated investment vehicles of the past. While there are more than 8000 funds in operation at present, we at Insider Monkey hone in on the elite of this group, close to 450 funds. It is estimated that this group oversees most of all hedge funds’ total capital, and by tracking their highest performing equity investments, we have revealed a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).
Equally as key, positive insider trading sentiment is another way to break down the marketplace. Just as you’d expect, there are plenty of motivations for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this strategy if shareholders understand what to do (learn more here).
With all of this in mind, it’s important to take a peek at the key action surrounding Maidenform Brands, Inc. (NYSE:MFB).
How are hedge funds trading Maidenform Brands, Inc. (NYSE:MFB)?
At the end of the fourth quarter, a total of 8 of the hedge funds we track were long in this stock, a change of 33% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the biggest position in Maidenform Brands, Inc. (NYSE:MFB). Royce & Associates has a $42.8 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates’s heels is D E Shaw, managed by D. E. Shaw, which held a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Joel Greenblatt’s Gotham Asset Management and Andy Redleaf’s Whitebox Advisors.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Gotham Asset Management, managed by Joel Greenblatt, created the biggest position in Maidenform Brands, Inc. (NYSE:MFB). Gotham Asset Management had 1.5 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also initiated a $0.6 million position during the quarter. The following funds were also among the new MFB investors: John Overdeck and David Siegel’s Two Sigma Advisors and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
How are insiders trading Maidenform Brands, Inc. (NYSE:MFB)?
Insider purchases made by high-level executives is best served when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, Maidenform Brands, Inc. (NYSE:MFB) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Maidenform Brands, Inc. (NYSE:MFB). These stocks are Oxford Industries, Inc. (NYSE:OXM), G-III Apparel Group, Ltd. (NASDAQ:GIII), American Apparel Inc. (NYSEAMEX:APP), True Religion Apparel, Inc. (NASDAQ:TRLG), and Perry Ellis International, Inc. (NASDAQ:PERY). This group of stocks belong to the textile – apparel clothing industry and their market caps are closest to MFB’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Oxford Industries, Inc. (NYSE:OXM)||5||2||3|
|G-III Apparel Group, Ltd. (NASDAQ:GIII)||14||1||4|
|American Apparel Inc. (NYSEAMEX:APP)||3||0||0|
|True Religion Apparel, Inc. (NASDAQ:TRLG)||13||0||0|
|Perry Ellis International, Inc. (NASDAQ:PERY)||8||0||8|
With the results shown by Insider Monkey’s strategies, everyday investors must always watch hedge fund and insider trading activity, and Maidenform Brands, Inc. (NYSE:MFB) shareholders fit into this picture quite nicely.