Duluth Holdings Inc (DLTH): Are Hedge Funds Right About This Stock?

As aggregate interest increased, some big names were breaking ground themselves. Point72 Asset Management, led by Steve Cohen, initiated the biggest position in Duluth Holdings Inc (NASDAQ:DLTH). According to its latest 13F filing, the fund had $4.5 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $2.9 million position during the quarter. The other funds with brand new DLTH positions are Paul Marshall and Ian Wace’s Marshall Wace LLP and Paul Tudor Jones’s Tudor Investment Corp.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Duluth Holdings Inc (NASDAQ:DLTH) but similarly valued. These stocks are Air Transport Services Group Inc. (NASDAQ:ATSG), Universal Health Realty Income Trust (NYSE:UHT), Caretrus REIT Inc (NASDAQ:CTRE), and Amphastar Pharmaceuticals Inc (NASDAQ:AMPH). This group of stocks’ market valuations are closest to DLTH’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $85 million. That figure was $36 million in DLTH’s case. Air Transport Services Group Inc. (NASDAQ:ATSG) is the most popular stock in this table. On the other hand Universal Health Realty Income Trust (NYSE:UHT) is the least popular one with only 5 bullish hedge fund positions. Duluth Holdings Inc (NASDAQ:DLTH) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ATSG might be a better candidate to consider taking a long position in.

Disclosure: none.