We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Kohl’s Corporation (NYSE:KSS).
Kohl’s Corporation (NYSE:KSS) investors should be aware of a decrease in support from the world’s most elite money managers in recent months. At the end of this article we will also compare KSS to other stocks including Hasbro, Inc. (NASDAQ:HAS), Nasdaq Inc (NASDAQ:NDAQ), and Arch Capital Group Ltd. (NASDAQ:ACGL) to get a better sense of its popularity.
To the average investor there are many formulas shareholders employ to evaluate stocks. Some of the most underrated formulas are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the top investment managers can trounce their index-focused peers by a solid amount (see the details here).
Now, we’re going to go over the recent action surrounding Kohl’s Corporation (NYSE:KSS).
Hedge fund activity in Kohl’s Corporation (NYSE:KSS)
At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -12% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Winton Capital Management, managed by David Harding, holds the number one position in Kohl’s Corporation (NYSE:KSS). Winton Capital Management has a $73 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which holds a $31.8 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that are bullish encompass Glenn Russell Dubin’s Highbridge Capital Management, Jim Simons’ Renaissance Technologies and Ray Dalio’s Bridgewater Associates.
Since Kohl’s Corporation (NYSE:KSS) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few fund managers that decided to sell off their full holdings by the end of the third quarter. It’s worth mentioning that Columbus Circle Investors dumped the largest investment of the 700 funds tracked by Insider Monkey, totaling an estimated $156.3 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund sold off about $37.6 million worth. These moves are important to note, as total hedge fund interest dropped by 4 funds by the end of the third quarter.
Let’s now review hedge fund activity in other stocks similar to Kohl’s Corporation (NYSE:KSS). We will take a look at Hasbro, Inc. (NASDAQ:HAS), Nasdaq Inc (NASDAQ:NDAQ), Arch Capital Group Ltd. (NASDAQ:ACGL), and Cablevision Systems Corporation (NYSE:CVC). This group of stocks’ market valuations match KSS’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $716 million. That figure was $318 million in KSS’s case. Cablevision Systems Corporation (NYSE:CVC) is the most popular stock in this table. On the other hand Nasdaq Inc (NASDAQ:NDAQ) is the least popular one with only 15 bullish hedge fund positions. Kohl’s Corporation (NYSE:KSS) 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 CVC might be a better candidate to consider a long position.