Hedge Funds Are Betting On Fossil Inc (FOSL)

Fossil Inc (NASDAQ:FOSL) was in 25 hedge funds’ portfolio at the end of the first quarter of 2013. FOSL shareholders have witnessed an increase in support from the world’s most elite money managers lately. There were 18 hedge funds in our database with FOSL holdings at the end of the previous quarter.

In the 21st century investor’s toolkit, there are tons of gauges investors can use to watch publicly traded companies. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outclass their index-focused peers by a superb margin (see just how much).

Just as beneficial, positive insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are a number of incentives for an executive to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).

Now, it’s important to take a glance at the latest action encompassing Fossil Inc (NASDAQ:FOSL).

Hedge fund activity in Fossil Inc (NASDAQ:FOSL)

Heading into Q2, a total of 25 of the hedge funds we track were long in this stock, a change of 39% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.

When looking at the hedgies we track, Steven Cohen’s SAC Capital Advisors had the most valuable position in Fossil Inc (NASDAQ:FOSL), worth close to $107 million, accounting for 0.5% of its total 13F portfolio. Sitting at the No. 2 spot is Eminence Capital, managed by Ricky Sandler, which held a $53.8 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Jonathon Jacobson’s Highfields Capital Management, SAC Subsidiary’s Sigma Capital Management and D. E. Shaw’s D E Shaw.

Now, key money managers have jumped into Fossil Inc (NASDAQ:FOSL) headfirst. Highfields Capital Management, managed by Jonathon Jacobson, established the most valuable position in Fossil Inc (NASDAQ:FOSL). Highfields Capital Management had 48.3 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $16.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Alexander Mitchell’s Scopus Asset Management, Matthew Tewksbury’s Stevens Capital Management, and Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management.

What have insiders been doing with Fossil Inc (NASDAQ:FOSL)?

Insider purchases made by high-level executives is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time period, Fossil Inc (NASDAQ:FOSL) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Fossil Inc (NASDAQ:FOSL). These stocks are Steinway Musical Instruments Inc (NYSE:LVB), Movado Group, Inc (NYSE:MOV), SHFL entertainment Inc (NASDAQ:SHFL), Manchester United PLC (NYSE:MANU), and Brunswick Corporation (NYSE:BC). This group of stocks belong to the recreational goods, other industry and their market caps are closest to FOSL’s market cap.

With the results shown by our tactics, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Fossil Inc (NASDAQ:FOSL) applies perfectly to this mantra.

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