Before we spend many hours researching a company, we’d like to analyze what hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last 12 months ending in October 30. Sixty three percent of these 30 stocks outperformed the market. Although the elite funds occasionally have their duds, such as Micron and Anadarko Petroleum, which fell 50% and 26%, respectively during the same time period, the hedge fund picks seem to work on average. In the following paragraphs, we find out what the billionaire investors and hedge funds think of PVH Corp (NYSE:PVH).
PVH Corp (NYSE:PVH) has experienced an increase in hedge fund sentiment recently. At the end of this article we will also compare PVH to other stocks including L-3 Communications Holdings, Inc. (NYSE:LLL), Total System Services, Inc. (NYSE:TSS), and Lear Corporation (NYSE:LEA) to get a better sense of its popularity.
With all of this in mind, we’re going to take a look at the key action surrounding PVH Corp (NYSE:PVH).
How are hedge funds trading PVH Corp (NYSE:PVH)?
At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 3% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Glenview Capital, managed by Larry Robbins, holds the number one position in PVH Corp (NYSE:PVH). Glenview Capital has an $444.5 million position in the stock, comprising 2.2% of its 13F portfolio. The second most bullish fund manager is D E Shaw, with an $129.8 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism comprise Ross Margolies’ Stelliam Investment Management, Glenn Fuhrman and John Phelan’s MSD Capital and Craig C. Albert’s Sheffield Asset Management.
As one would reasonably expect, some big names have jumped into PVH Corp (NYSE:PVH) headfirst. Capital Growth Management, managed by Ken Heebner, established the largest position in PVH Corp (NYSE:PVH). Capital Growth Management had $77 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also initiated an $32.5 million position during the quarter. The other funds with brand new PVH positions are Matthew Tewksbury’s Stevens Capital Management, David Harding’s Winton Capital Management, and Eric Bannasch’s Cadian Capital.
Let’s now review hedge fund activity in other stocks similar to PVH Corp (NYSE:PVH). We will take a look at L-3 Communications Holdings, Inc. (NYSE:LLL), Total System Services, Inc. (NYSE:TSS), Lear Corporation (NYSE:LEA), and International Flavors & Fragrances Inc (NYSE:IFF). This group of stocks’ market values resemble PVH’s market value.
|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 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $385 million. That figure was $1247 million in PVH’s case. Lear Corporation (NYSE:LEA) is the most popular stock in this table. On the other hand L-3 Communications Holdings, Inc. (NYSE:LLL) is the least popular one with only 18 bullish hedge fund positions. PVH Corp (NYSE:PVH) 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 LEA might be a better candidate to consider a long position.