At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
Steven Madden, Ltd. (NASDAQ:SHOO) was in 18 hedge funds’ portfolios at the end of the third quarter of 2015. SHOO has seen an increase in activity from the world’s largest hedge funds of late. There were 15 hedge funds in our database with SHOO holdings at the end of the previous quarter. At the end of this article we will also compare SHOO to other stocks including Eldorado Gold Corp (USA) (NYSE:EGO), RLI Corp. (NYSE:RLI), and Medical Properties Trust, Inc. (NYSE:MPW) to get a better sense of its popularity.
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Keeping this in mind, let’s check out the key action surrounding Steven Madden, Ltd. (NASDAQ:SHOO).
Hedge fund activity in Steven Madden, Ltd. (NASDAQ:SHOO)
Heading into Q4, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 20% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Ken Griffin’s Citadel Investment Group has the most valuable position in Steven Madden, Ltd. (NASDAQ:SHOO), worth close to $21.3 million, corresponding to less than 0.1% of its total 13F portfolio. On Citadel Investment Group’s heels is Alexander Mitchell of Scopus Asset Management, with a $20.7 million position; 0.6% of its 13F portfolio is allocated to the stock. Other peers with similar optimism comprise Ken Grossman and Glen Schneider’s SG Capital Management, David Keidan’s Buckingham Capital Management and Clifford Fox’s Columbus Circle Investors.
As aggregate interest increased, key hedge funds have been driving this bullishness. Scopus Asset Management, managed by Alexander Mitchell, initiated the biggest position in Steven Madden, Ltd. (NASDAQ:SHOO). Scopus Asset Management had $20.7 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also made a $18.9 million investment in the stock during the quarter. The other funds with brand new SHOO positions are Mark Coe’s Coe Capital Management, Neil Chriss’s Hutchin Hill Capital, and Michael Platt and William Reeves’s BlueCrest Capital Mgmt..
Let’s go over hedge fund activity in other stocks similar to Steven Madden, Ltd. (NASDAQ:SHOO). We will take a look at Eldorado Gold Corp (USA) (NYSE:EGO), RLI Corp. (NYSE:RLI), Medical Properties Trust, Inc. (NYSE:MPW), and Gerdau SA (ADR) (NYSE:GGB). All of these stocks’ market caps are similar to SHOO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EGO | 14 | 55138 | -1 |
| RLI | 13 | 109257 | 4 |
| MPW | 10 | 72602 | 3 |
| GGB | 10 | 51368 | -2 |
As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $72 million. That figure was $134 million in SHOO’s case. Eldorado Gold Corp (USA) (NYSE:EGO) is the most popular stock in this table. On the other hand Medical Properties Trust, Inc. (NYSE:MPW) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Steven Madden, Ltd. (NASDAQ:SHOO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
