We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).
Bullish Barron’s Write Up On Whole Foods Market
Whole Foods Market, Inc. (NASDAQ:WFM) is trading 2.5% higher after a Barron’s article predicted that the stock could rebound as much as 20% over the next 12 months as cost cuts and the launch of new smaller stores help the bottom line. Whole Foods’ same store sales decline is expected to moderate over this quarter and next and could turn positive as its newly-found competitive pricing increases demand. Adding to profits and revenues will be Whole Foods Market, Inc. (NASDAQ:WFM)’s new 365 value chain, which is a smaller store format featuring value items. The new store concept is expected to eventually ramp up to 1,200 stores. Cliff Asness’ AQR Capital Management owned over 1.3 million shares of Whole Foods Market at the end of March.
BlackRock Sells Some Real Estate
BlackRock, Inc. (NYSE:BLK) is in the spotlight today after the firm scored the largest single-tower real estate deal in Singapore. According to Bloomberg, the sovereign wealth fund Qatar Investment Authority has agreed to purchase BlackRock’s Asia Square Tower 1 for around $2.5 billion. The tower is 90% occupied and counts numerous financial firms as tentpole tenants. The sale breathes some lift into the Singapore real estate market. Ken Fisher’s Fisher Asset Management owned 75,737 shares of BlackRock, Inc. (NYSE:BLK) at the end of the first quarter.
On the next page, we examine Harley-Davidson, Brinker International, and Wal-Mart Stores.