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 Burlington Stores Inc (NYSE:BURL)?
Burlington Stores Inc (NYSE:BURL) has experienced an increase in enthusiasm from smart money lately. BURL was in 36 hedge funds’ portfolios at the end of the third quarter of 2016. There were 34 hedge funds in our database with BURL positions 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 Nordson Corporation (NASDAQ:NDSN), Live Nation Entertainment, Inc. (NYSE:LYV), and Banco Bradesco SA (ADR) (NYSE:BBD) to gather more data points.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, we’re going to take a gander at the new action surrounding Burlington Stores Inc (NYSE:BURL).
What have hedge funds been doing with Burlington Stores Inc (NYSE:BURL)?
At the end of the third quarter, a total of 36 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Balyasny Asset Management, managed by Dmitry Balyasny, holds the number one position in Burlington Stores Inc (NYSE:BURL). Balyasny Asset Management has a $91.1 million position in the stock, comprising 0.5% of its 13F portfolio. Some other hedge funds and institutional investors that are bullish contain Phill Gross and Robert Atchinson’s Adage Capital Management, Robert Pohly’s Samlyn Capital and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital.
Now, key money managers were leading the bulls’ herd. Two Sigma Advisors, managed by John Overdeck and David Siegel, established the biggest position in Burlington Stores Inc (NYSE:BURL). Two Sigma Advisors had $88 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also made a $53.7 million investment in the stock during the quarter. The other funds with brand new BURL positions are Ken Griffin’s Citadel Investment Group, Anand Parekh’s Alyeska Investment Group, and John Kim’s Night Owl Capital Management.
Let’s now review hedge fund activity in other stocks similar to Burlington Stores Inc (NYSE:BURL). We will take a look at Nordson Corporation (NASDAQ:NDSN)), Live Nation Entertainment, Inc. (NYSE:LYV), Banco Bradesco SA (ADR) (NYSE:BBD), and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). This group of stocks’ market caps are similar to BURL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NDSN | 14 | 81845 | -8 |
| LYV | 32 | 495488 | -1 |
| BBD | 13 | 323892 | 3 |
| ALNY | 25 | 389114 | 0 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $323 million. That figure was $815 million in BURL’s case. Live Nation Entertainment, Inc. (NYSE:LYV) is the most popular stock in this table. On the other hand Banco Bradesco SA (ADR) (NYSE:BBD) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Burlington Stores Inc (NYSE:BURL) 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.
