We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Christopher & Banks Corporation (NYSE:CBK).
Christopher & Banks Corporation (NYSE:CBK) investors should be aware of a decrease in support from the world’s most elite money managers recently. Christopher & Banks Corporation (NYSE:CBK) was in 6 hedge funds’ portfolios at the end of September. There were 11 hedge funds in our database with Christopher & Banks Corporation (NYSE:CBK) holdings at the end of the previous quarter. The move should not come as a surprise, as the stock lost 72.32% value during the third quarter.
Considering that some hedge funds still hold positions in the company, we will try to cover similar stock picks of hedge funds. At the end of this article, we will compare Christopher & Banks Corporation (NYSE:CBK) to other stocks, including Cinedigm Corp (NASDAQ:CIDM), Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK), and Smith Micro Software, Inc. (NASDAQ:SMSI) to get a better sense of its popularity.
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In the eyes of most stock holders, hedge funds are perceived as worthless, outdated investment vehicles of the past. While there are more than 8000 funds with their doors open today, Our researchers hone in on the upper echelon of this club, about 700 funds. These money managers preside over most of the smart money’s total asset base, and by keeping an eye on their highest performing picks, Insider Monkey has identified a number of investment strategies that have historically outrun the market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Keeping this in mind, we’re going to take a glance at the latest action surrounding Christopher & Banks Corporation (NYSE:CBK).
How are hedge funds trading Christopher & Banks Corporation (NYSE:CBK)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 45% from the second quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies has the most valuable position in Christopher & Banks Corporation (NYSE:CBK), worth close to $1.6 million, amounting to less than 0.1% of its total 13F portfolio. On Renaissance Technologies’ heels is Keane Capital Management, managed by Peter Keane, which holds a $0.3 million position; 0.4% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that are bullish contain D E Shaw, Cliff Asness’ AQR Capital Management, and Israel Englander’s Millennium Management.
Due to the fact that Christopher & Banks Corporation (NYSE:CBK) has faced a falling interest from the smart money, logic holds that there lies a certain “tier” of money managers that slashed their entire stakes in the third quarter. Interestingly, Chuck Royce’s Royce & Associates dumped the biggest position of all the hedgies tracked by Insider Monkey, valued at an estimated $1.4 million in stock. Mark N. Diker’s fund, Diker Management, also said goodbye to its stock, about $0.6 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds in the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Christopher & Banks Corporation (NYSE:CBK) but similarly valued. These stocks are Cinedigm Corp (NASDAQ:CIDM), Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK), Smith Micro Software, Inc. (NASDAQ:SMSI), and the First Marblehead Corporation (NYSE:FMD). This group of stocks’ market valuations match Christopher & Banks Corporation (NYSE:CBK)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CIDM | 8 | 2168 | -4 |
| NAK | 4 | 2352 | 0 |
| SMSI | 5 | 5195 | 1 |
| FMD | 4 | 4393 | -2 |
As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $3 million in Christopher & Banks Corporation (NYSE:CBK)’s case. Cinedigm Corp (NASDAQ:CIDM) is the most popular stock in this table. On the other hand, Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK) is the least popular one with only 4 bullish hedge fund positions. Christopher & Banks Corporation (NYSE:CBK) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Cinedigm Corp (NASDAQ:CIDM) might be a better candidate to consider a long position.
