The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Steven Madden, Ltd. (NASDAQ:SHOO).
Is Steven Madden, Ltd. (NASDAQ:SHOO) a buy right now? Money managers were taking a bullish view. The number of long hedge fund bets improved by 5 lately. Steven Madden, Ltd. (NASDAQ:SHOO) was in 23 hedge funds’ portfolios at the end of September. The all time high for this statistic is 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that SHOO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 18 hedge funds in our database with SHOO positions at the end of the second quarter.
Michael Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. Keeping this in mind let’s take a look at the new hedge fund action regarding Steven Madden, Ltd. (NASDAQ:SHOO).
Do Hedge Funds Think SHOO Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 28% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SHOO over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Scopus Asset Management was the largest shareholder of Steven Madden, Ltd. (NASDAQ:SHOO), with a stake worth $40.2 million reported as of the end of September. Trailing Scopus Asset Management was Citadel Investment Group, which amassed a stake valued at $32.4 million. Millennium Management, Point72 Asset Management, and Marshall Wace LLP 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 Scopus Asset Management allocated the biggest weight to Steven Madden, Ltd. (NASDAQ:SHOO), around 0.68% of its 13F portfolio. Zebra Capital Management is also relatively very bullish on the stock, designating 0.64 percent of its 13F equity portfolio to SHOO.
With a general bullishness amongst the heavyweights, some big names have jumped into Steven Madden, Ltd. (NASDAQ:SHOO) headfirst. Point72 Asset Management, managed by Steve Cohen, initiated the biggest position in Steven Madden, Ltd. (NASDAQ:SHOO). Point72 Asset Management had $19.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $11.4 million investment in the stock during the quarter. The following funds were also among the new SHOO investors: John Overdeck and David Siegel’s Two Sigma Advisors, Michael Gelband’s ExodusPoint Capital, and Peter Algert’s Algert Global.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Steven Madden, Ltd. (NASDAQ:SHOO) but similarly valued. We will take a look at Evertec Inc (NYSE:EVTC), Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), Turning Point Therapeutics, Inc. (NASDAQ:TPTX), Associated Banc Corp (NYSE:ASB), SITE Centers Corp. (NYSE:SITC), Clover Health Investments, Corp. (NASDAQ:CLOV), and Sabra Health Care REIT Inc (NASDAQ:SBRA). This group of stocks’ market values match SHOO’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EVTC | 17 | 189912 | -3 |
| CBRL | 21 | 107435 | -7 |
| TPTX | 21 | 449761 | -7 |
| ASB | 19 | 183680 | 1 |
| SITC | 16 | 72678 | -2 |
| CLOV | 12 | 396288 | -11 |
| SBRA | 11 | 33029 | -3 |
| Average | 16.7 | 204683 | -4.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.7 hedge funds with bullish positions and the average amount invested in these stocks was $205 million. That figure was $196 million in SHOO’s case. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) is the most popular stock in this table. On the other hand Sabra Health Care REIT Inc (NASDAQ:SBRA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Steven Madden, Ltd. (NASDAQ:SHOO) is more popular among hedge funds. Our overall hedge fund sentiment score for SHOO is 90. 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 returned 31.1% in 2021 through December 9th but still managed to beat the market by 5.1 percentage points. Hedge funds were also right about betting on SHOO as the stock returned 19.5% since the end of September (through 12/9) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Steven Madden Ltd. (NASDAQ:SHOO)
Follow Steven Madden Ltd. (NASDAQ:SHOO)
Suggested Articles:
- 10 Penny Stocks Robinhood Traders are Buying in 2021
- 25 Biggest Questions in Life
- 10 Best Uranium Stocks to Buy Now
Disclosure: None. This article was originally published at Insider Monkey.
