Hedge Funds Are Betting On Michael Kors Holdings Ltd (KORS)

Michael Kors Holdings Ltd (NYSE:KORS) was in 49 hedge funds’ portfolio at the end of the first quarter of 2013. KORS has seen an increase in support from the world’s most elite money managers lately. There were 42 hedge funds in our database with KORS holdings at the end of the previous quarter.

At the moment, there are many methods market participants can use to track publicly traded companies. A pair of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can trounce their index-focused peers by a solid margin (see just how much).

Just as beneficial, bullish insider trading activity is a second way to break down the marketplace. Obviously, there are lots of reasons for an executive to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if shareholders know what to do (learn more here).

Keeping this in mind, let’s take a gander at the latest action encompassing Michael Kors Holdings Ltd (NYSE:KORS).

What does the smart money think about Michael Kors Holdings Ltd (NYSE:KORS)?

In preparation for this quarter, a total of 49 of the hedge funds we track held long positions in this stock, a change of 17% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.

Of the funds we track, Viking Global, managed by Andreas Halvorsen, holds the most valuable position in Michael Kors Holdings Ltd (NYSE:KORS). Viking Global has a $682.6 million position in the stock, comprising 4.1% of its 13F portfolio. Sitting at the No. 2 spot is Lone Pine Capital, managed by Stephen Mandel, which held a $458.6 million position; the fund has 2.4% of its 13F portfolio invested in the stock. Other peers that hold long positions include Steven Cohen’s SAC Capital Advisors, Donald Chiboucis’s Columbus Circle Investors and Ken Griffin’s Citadel Investment Group.

With a general bullishness amongst the heavyweights, specific money managers have jumped into Michael Kors Holdings Ltd (NYSE:KORS) headfirst. Merchants’ Gate Capital, managed by Jason Capello, established the largest position in Michael Kors Holdings Ltd (NYSE:KORS). Merchants’ Gate Capital had 65.3 million invested in the company at the end of the quarter. Eric Chen’s Antipodean Advisors also made a $53.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Christian Leone’s Luxor Capital Group, Michael Novogratz’s Fortress Investment Group, and Alexander Mitchell’s Scopus Asset Management.

What do corporate executives and insiders think about Michael Kors Holdings Ltd (NYSE:KORS)?

Insider buying is particularly usable when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time period, Michael Kors Holdings Ltd (NYSE:KORS) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Michael Kors Holdings Ltd (NYSE:KORS). These stocks are Urban Outfitters, Inc. (NASDAQ:URBN), The Gap Inc. (NYSE:GPS), Ross Stores, Inc. (NASDAQ:ROST), Limited Brands, Inc. (NYSE:LTD), and Nordstrom, Inc. (NYSE:JWN). This group of stocks are in the apparel stores industry and their market caps are closest to KORS’s market cap.