Why are Hedge Funds Buying this Footwear Company?

"Hedge Fund" (Photo credit: C-Monster)

 In the financial world, there are many strategies that individual investors can use to analyze their portfolios, though one indicator that is often overlooked is hedge fund sentiment. In almost every case, it’s important to take a look at how the world’s most successful money managers are behaving; it may even help you turn a profit. Empirical studies have shown that fund managers’ top stock picks can beat the market by 7% a year, while our research can give you the tools to generate an excess return of up to 20% annually.

One stock that hedge fund managers have been particularly bullish about in recent months is Skechers USA Inc. (NYSE:SKX). Since the start of 2012, shares of the casual footwear company have generated a return of 73.5%, beating the footwear and accessories industry (7.2%) quite handily. Over this same time, hedge fund interest in the stock has been increasing by an equally impressive rate.

At the end of June, 16 fund managers held long positions in Skechers, compared to 10 at the end of 2011. According to the industry’s 13F filings with the SEC, the most bullish hedge fund over this timeframe was Kian Ghazi’s Hawkshaw Capital Management, which initiated a $10.2 billion position in the company. Other prominent money managers that currently hold shares of Skechers are Steven Cohen, Jim Simons, and Cliff Asness. Cohen’s SAC Capital Advisors doubled-down on Skechers over the last quarter and then some, increasing its holdings by 155%. ... Continue to read.

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