Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the fourth quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Foot Locker, Inc. (NYSE:FL) based on that data.
Foot Locker, Inc. (NYSE:FL) investors should pay attention to an increase in enthusiasm from smart money of late. Foot Locker, Inc. (NYSE:FL) was in 28 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 38. There were 26 hedge funds in our database with FL holdings at the end of December. Our calculations also showed that FL isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Louis Bacon Moore of Moore Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s view the recent hedge fund action surrounding Foot Locker, Inc. (NYSE:FL).
Do Hedge Funds Think FL Is A Good Stock To Buy Now?
At the end of March, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the previous quarter. By comparison, 21 hedge funds held shares or bullish call options in FL a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Two Sigma Advisors was the largest shareholder of Foot Locker, Inc. (NYSE:FL), with a stake worth $63.8 million reported as of the end of March. Trailing Two Sigma Advisors was Arrowstreet Capital, which amassed a stake valued at $51.1 million. Atreides Management, AQR Capital Management, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position MIK Capital allocated the biggest weight to Foot Locker, Inc. (NYSE:FL), around 5.63% of its 13F portfolio. Dendur Capital is also relatively very bullish on the stock, setting aside 2.9 percent of its 13F equity portfolio to FL.
As industrywide interest jumped, specific money managers were breaking ground themselves. Atreides Management, managed by Gavin Baker, assembled the biggest position in Foot Locker, Inc. (NYSE:FL). Atreides Management had $46.8 million invested in the company at the end of the quarter. Kamyar Khajavi’s MIK Capital also initiated a $15.2 million position during the quarter. The other funds with brand new FL positions are Malcolm Levine’s Dendur Capital, Louis Bacon’s Moore Global Investments, and Brandon Haley’s Holocene Advisors.
Let’s check out hedge fund activity in other stocks similar to Foot Locker, Inc. (NYSE:FL). These stocks are Kodiak Sciences Inc (NASDAQ:KOD), Pilgrim’s Pride Corporation (NASDAQ:PPC), Corelogic Inc (NYSE:CLGX), Regal Beloit Corporation (NYSE:RBC), Shoals Technologies Group, Inc. (NASDAQ:SHLS), Inspire Medical Systems, Inc. (NYSE:INSP), and Amkor Technology, Inc. (NASDAQ:AMKR). This group of stocks’ market valuations are closest to FL’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| KOD | 17 | 1806649 | -3 |
| PPC | 16 | 122066 | -1 |
| CLGX | 49 | 1690451 | 3 |
| RBC | 30 | 358632 | 5 |
| SHLS | 22 | 323958 | 22 |
| INSP | 28 | 431163 | 1 |
| AMKR | 20 | 172121 | -4 |
| Average | 26 | 700720 | 3.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $701 million. That figure was $332 million in FL’s case. Corelogic Inc (NYSE:CLGX) is the most popular stock in this table. On the other hand Pilgrim’s Pride Corporation (NASDAQ:PPC) is the least popular one with only 16 bullish hedge fund positions. Foot Locker, Inc. (NYSE:FL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for FL is 47.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Hedge funds were also right about betting on FL, though not to the same extent, as the stock returned 12.5% since Q1 (through July 9th) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.
