Tiffany & Co. (TIF)’s Weak Quarter Taking the Sparkle Off Its Shares

Because Tiffany & Co. (NYSE:TIF) has faced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few money managers that decided to sell off their entire stakes by the end of the first quarter. It’s worth mentioning that Rob Citrone’s Discovery Capital Management said goodbye to the largest position of all the hedgies monitored by Insider Monkey, valued at close to $55.7 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund cut about $48.9 million worth. These transactions are interesting, as total hedge fund interest was cut by 3 funds by the end of the first quarter.

Let’s also examine hedge fund activity in other stocks similar to Tiffany & Co. (NYSE:TIF). These stocks are Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC), Interpublic Group of Companies Inc (NYSE:IPG), KeyCorp (NYSE:KEY), and Cimarex Energy Co (NYSE:XEC). This group of stocks’ market valuations are closest to TIF’s market valuation.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $915 million. That figure was $372 million in TIF’s case. KeyCorp (NYSE:KEY) is the most popular stock in this table. On the other hand Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC) is the least popular one with only 5 bullish hedge fund positions. Tiffany & Co. (NYSE:TIF) 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 KEY might be a better candidate to consider a long position.

Disclosure: None