At Insider Monkey, we pore over the filings of more than 700 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not Nordstrom, Inc. (NYSE:JWN) makes for a good investment right now.
Is Nordstrom, Inc. (NYSE:JWN) the right pick for your portfolio? Hedge funds are in an optimistic mood. The number of bullish hedge fund bets rose by 11 recently. At the end of this article we will also compare Nordstrom, Inc. (NYSE:JWN) to other stocks including WestRock Co (NYSE:WRK), Ingersoll-Rand PLC (NYSE:IR), and Parker-Hannifin Corporation (NYSE:PH) to get a better sense of its popularity.
Follow Nordstrom Inc (NYSE:JWN)
Follow Nordstrom Inc (NYSE:JWN)
In today’s marketplace there are numerous formulas investors put to use to analyze stocks. Two of the best formulas are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform the broader indices by a solid margin (see the details here).
With all of this in mind, let’s go over the fresh action encompassing Nordstrom, Inc. (NYSE:JWN).
How have hedgies been trading Nordstrom, Inc. (NYSE:JWN)?
At the end of the third quarter, a total of 38 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 41% gain from the second quarter. With the smart money’s sentiment soaring, there exists a few notable hedge fund managers who were increasing their stakes substantially (or had already accumulated large positions).
According to Insider Monkey’s investor database, Citadel Investment Group, managed by Ken Griffin, holds the number one position in Nordstrom, Inc. (NYSE:JWN). Citadel Investment Group has a $222.2 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting in the number two spot is Alkeon Capital Management, managed by Panayotis Takis Sparaggis, which holds a $106.4 million position; 2.2% of its 13F portfolio is allocated to the stock. Remaining members of the smart money that hold long positions contain Alexander Mitchell’s Scopus Asset Management, Steve Cohen’s Point72 Asset Management, and Israel Englander’s Millennium Management.
Consequently, specific money managers have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most outsized position in Nordstrom, Inc. (NYSE:JWN). Balyasny Asset Management had $46.8 million invested in the company at the end of the quarter. David Keidan’s Buckingham Capital Management also initiated a $13.2 million position during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, D E Shaw, and Ray Dalio’s Bridgewater Associates.
Let’s also examine hedge fund activity in other stocks similar to Nordstrom, Inc. (NYSE:JWN). These stocks are WestRock Co (NYSE:WRK), Ingersoll-Rand PLC (NYSE:IR), Parker-Hannifin Corporation (NYSE:PH), and Mohawk Industries, Inc. (NYSE:MHK). This group of stocks’ market values most closely resemble Nordstrom, Inc. (NYSE:JWN)’s.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WRK | 42 | 1474208 | 41 |
| IR | 42 | 1439823 | 5 |
| PH | 25 | 847557 | 5 |
| MHK | 64 | 2866628 | 5 |
As you can see these stocks had an average of 43.25 hedge funds with bullish positions and the average amount invested in these stocks was $1.68 billion. That figure was $841 million in Nordstrom, Inc. (NYSE:JWN)’s case. Mohawk Industries, Inc. (NYSE:MHK) is the most popular stock in this table. On the other hand Parker-Hannifin Corporation (NYSE:PH) is the least popular one with only 25 bullish hedge fund positions. Nordstrom, Inc. (NYSE:JWN) is not the least popular stock in this group but hedge fund interest is still below average, as is the amount of capital invested in the stock. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are pouring a lot of money into. In this regard Mohawk Industries might be a better candidate to consider a long position in, though Nordstrom is worth watching given the big jump in ownership.
