Were Bearish Hedge Funds Wrong About Apparel Maker Abercrombie & Fitch Co. (ANF)?

Out of the more than 700 hedge funds tracked by Insider Monkey, SG Capital Management, managed by Ken Grossman and Glen Schneider, opened a new position in the stock, closing the second quarter with 847,131 shares with a market value of $18.22 million. Billionaire David Harding’s Winton Capital Management was also long in the stock at the end of the second quarter, with 612,262 shares valued at $13.17 million, after the fund raised its stake in the stock by 102% during the quarter. Some other noteworthy investors that were long in the stock are Elm Ridge Capital, led by Ron Gutfleish, with 592,469 shares valued at $12.74 million, and billionaire D. E. Shaw’s D E Shaw, with 536,519 shares valued at $11.54 million.

In conclusion, we can say that hedge funds were bearish and rightfully so, as shares have steadily declined. On the other hand, insiders, who are reputed for knowing a lot about the internal affairs and projections of a company, have been optimistic about the stock recently, which suggests that the bottom may have been reached. Taking the company’s recent performance into consideration, and its renewed re-branding strategy, we can say that Abercrombie & Fitch Co. (NYSE:ANF) has good potential and that the stock is a good buy at the moment.

Disclosure: None