The Gap Inc. (GPS): Are Hedge Funds Right About This Stock?

Consequently, specific money managers were leading the bulls’ herd. OZ Management, managed by Daniel S. Och, initiated the most valuable position in The Gap Inc. (NYSE:GPS). OZ Management had $79.8 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $31.5 million position during the quarter. The following funds were also among the new GPS investors: Jim Simons’s Renaissance Technologies, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Neil Chriss’s Hutchin Hill Capital.

Let’s also examine hedge fund activity in other stocks similar to The Gap Inc. (NYSE:GPS). We will take a look at Liberty Media Corp (NASDAQ:LMCK), Whirlpool Corporation (NYSE:WHR), Equifax Inc. (NYSE:EFX), and Tata Motors Limited (ADR) (NYSE:TTM). This group of stocks’ market valuations are closest to GPS’s market valuation.

As you can see these stocks had an average of 33.25 hedge funds with bullish positions and the average amount invested in these stocks was $1,170 million. That figure was $773 million in GPS’s case. Liberty Media Corp (NASDAQ:LMCK) is the most popular stock in this table. On the other hand Tata Motors Limited (ADR) (NYSE:TTM) is the least popular one with only 22 bullish hedge fund positions. The Gap Inc. (NYSE:GPS) 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 LMCK might be a better candidate to consider a long position.