Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Coach, Inc. (NYSE:COH)?
Is Coach, Inc. (NYSE:COH) a first-rate investment right now? Prominent investors are turning less bullish. The number of bullish hedge fund positions went down by 8 in recent months. Coach, Inc. (NYSE:COH) was in 27 hedge funds’ portfolios at the end of the third quarter of 2015. There were 35 hedge funds in our database with Coach, Inc. (NYSE:COH) holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as ANSYS, Inc. (NASDAQ:ANSS), IHS Inc. (NYSE:IHS), and Polaris Industries Inc. (NYSE:PII) to gather more data points.
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According to most shareholders, hedge funds are viewed as slow, outdated investment tools of years past. While there are more than 8000 funds in operation today, we hone in on the aristocrats of this club, about 700 funds. These money managers orchestrate the majority of the hedge fund industry’s total capital, and by paying attention to their matchless stock picks, Insider Monkey has determined many investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Now, let’s take a glance at the key action regarding Coach, Inc. (NYSE:COH).
How are hedge funds trading Coach, Inc. (NYSE:COH)?
At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decrease of 23% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Point72 Asset Management, managed by Steve Cohen, holds the number one position in Coach, Inc. (NYSE:COH). Point72 Asset Management has a $87.5 million position in the stock, comprising 0.7% of its 13F portfolio. The second most bullish fund manager is David Harding of Winton Capital Management, with a $49.9 million position; 0.4% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors that are bullish comprise Ken Griffin’s Citadel Investment Group, Clint Carlson’s Carlson Capital, and D E Shaw.
Seeing as Coach, Inc. (NYSE:COH) has witnessed a declination in interest from hedge fund managers, we can see that there were a few money managers that decided to sell off their entire stakes last quarter. Interestingly, Gilchrist Berg’s Water Street Capital cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, worth close to $17.3 million in call options.. Mike Masters’s fund, Masters Capital Management, also said goodbye to its call options., about $10.5 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 8 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks similar to Coach, Inc. (NYSE:COH). We will take a look at ANSYS, Inc. (NASDAQ:ANSS), IHS Inc. (NYSE:IHS), Polaris Industries Inc. (NYSE:PII), and Unum Group (NYSE:UNM). All of these stocks’ market caps match Coach, Inc. (NYSE:COH)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ANSS | 20 | 428268 | 3 |
| IHS | 25 | 874968 | 6 |
| PII | 20 | 401145 | 0 |
| UNM | 28 | 364047 | 0 |
As you can see, these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $517 million. That figure was $429 million in Coach, Inc. (NYSE:COH)’s case. Unum Group (NYSE:UNM) is the most popular stock in this table. On the other hand, ANSYS, Inc. (NASDAQ:ANSS) is the least popular one with only 20 bullish hedge fund positions. Coach, Inc. (NYSE:COH) 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, Unum Group (NYSE:UNM) might be a better candidate to consider a long position.
