Should You Go Shopping for Shares of Ascena Retail Group Inc (ASNA)?

As aggregate interest increased, key money managers have jumped into Ascena Retail Group Inc (NASDAQ:ASNA) headfirst. Melvin Capital Management, managed by Gabriel Plotkin, assembled the most valuable position in Ascena Retail Group Inc (NASDAQ:ASNA). Melvin Capital Management had $4.5 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $3.3 million investment in the stock during the quarter. The other funds with brand new ASNA positions are Neil Chriss’ Hutchin Hill Capital, Sander Gerber’s Hudson Bay Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now take a look at hedge fund activity in other stocks similar to Ascena Retail Group Inc (NASDAQ:ASNA). We will take a look at Forward Air Corporation (NASDAQ:FWRD), Horace Mann Educators Corporation (NYSE:HMN), Noah Holdings Limited (ADR) (NYSE:NOAH), and Cheetah Mobile Inc (ADR) (NYSE:CMCM). This group of stocks’ market valuations match ASNA’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FWRD 16 149374 3
HMN 11 28980 -2
NOAH 8 52556 2
CMCM 5 23052 -1

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $175 million in ASNA’s case. Forward Air Corporation (NASDAQ:FWRD) is the most popular stock in this table. On the other hand Cheetah Mobile Inc (ADR) (NYSE:CMCM) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Ascena Retail Group Inc (NASDAQ:ASNA) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, and growing more bullish, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None