What Smart Money Thinks about The Gap Inc (GPS)?

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Due to the fact that The Gap Inc (NYSE:GPS) has faced falling interest from the smart money, it’s safe to say that there exists a select few money managers that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that John A. Levin’s Levin Capital Strategies dumped the biggest position of the 700 funds studied by Insider Monkey, comprising about $53.6 million in stock. Gabriel Plotkin’s fund, Melvin Capital Management, sold all of its call options, about $31.8 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to The Gap Inc (NYSE:GPS). These stocks are Snap-on Incorporated (NYSE:SNA), The Cooper Companies, Inc. (NYSE:COO), Sunoco Logistics Partners L.P. (NYSE:SXL), and Alliant Energy Corporation (NYSE:LNT). This group of stocks’ market valuations are similar to GPS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SNA 27 651564 -1
COO 26 329471 5
SXL 10 124366 -1
LNT 15 72746 -1

As you can see these stocks had an average of 20 investors with bullish positions and the average amount invested in these stocks was $295 million, compared to $299 million in GPS’s case. Snap-on Incorporated (NYSE:SNA) is the most popular stock in this table. On the other hand Sunoco Logistics Partners L.P. (NYSE:SXL) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks The Gap Inc (NYSE:GPS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none

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