Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Deckers Outdoor Corp (NASDAQ:DECK) in this article.
Deckers Outdoor Corp (NASDAQ:DECK) was in 44 hedge funds’ portfolios at the end of June. The all time high for this statistic is 54. DECK has seen an increase in support from the world’s most elite money managers lately. There were 40 hedge funds in our database with DECK positions at the end of the first quarter. Our calculations also showed that DECK isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Daniel Sundheim of D1 Capital Partners
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Do Hedge Funds Think DECK Is A Good Stock To Buy Now?
At Q2’s end, a total of 44 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the previous quarter. By comparison, 47 hedge funds held shares or bullish call options in DECK 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.
When looking at the institutional investors followed by Insider Monkey, Steadfast Capital Management, managed by Robert Pitts, holds the largest position in Deckers Outdoor Corp (NASDAQ:DECK). Steadfast Capital Management has a $295.8 million position in the stock, comprising 2.7% of its 13F portfolio. Coming in second is Daniel Sundheim of D1 Capital Partners, with a $134.8 million position; 0.9% of its 13F portfolio is allocated to the company. Other professional money managers that are bullish comprise Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Gabriel Plotkin’s Melvin Capital Management and Gavin Baker’s Atreides Management. In terms of the portfolio weights assigned to each position 59 North Capital allocated the biggest weight to Deckers Outdoor Corp (NASDAQ:DECK), around 16.37% of its 13F portfolio. One01 Capital is also relatively very bullish on the stock, setting aside 7.06 percent of its 13F equity portfolio to DECK.
As aggregate interest increased, key hedge funds have been driving this bullishness. D1 Capital Partners, managed by Daniel Sundheim, established the most outsized position in Deckers Outdoor Corp (NASDAQ:DECK). D1 Capital Partners had $134.8 million invested in the company at the end of the quarter. James Parsons’s Junto Capital Management also made a $85.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Christian Leone’s Luxor Capital Group, Alok Agrawal’s Bloom Tree Partners, and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Deckers Outdoor Corp (NASDAQ:DECK) but similarly valued. We will take a look at ChargePoint Holdings, Inc. (NYSE:CHPT), ironSource Ltd. (NYSE:IS), American Financial Group (NYSE:AFG), Brookfield Renewable Partners L.P. (NYSE:BEP), Lamar Advertising Company (NASDAQ:LAMR), Lear Corporation (NYSE:LEA), and China Southern Airlines Co Ltd (NYSE:ZNH). This group of stocks’ market values are similar to DECK’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CHPT | 17 | 149306 | -7 |
| IS | 32 | 771885 | -20 |
| AFG | 19 | 219952 | -2 |
| BEP | 20 | 232664 | -4 |
| LAMR | 32 | 387994 | -3 |
| LEA | 34 | 1244893 | 11 |
| ZNH | 2 | 11192 | -1 |
| Average | 22.3 | 431127 | -3.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.3 hedge funds with bullish positions and the average amount invested in these stocks was $431 million. That figure was $1474 million in DECK’s case. Lear Corporation (NYSE:LEA) is the most popular stock in this table. On the other hand China Southern Airlines Co Ltd (NYSE:ZNH) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Deckers Outdoor Corp (NASDAQ:DECK) is more popular among hedge funds. Our overall hedge fund sentiment score for DECK is 83.4. 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 22.9% in 2021 through October 1st and still beat the market by 5.6 percentage points. Unfortunately DECK wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on DECK were disappointed as the stock returned -4.8% since the end of the second quarter (through 10/1) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
