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23 March 2020 16:30

Peter Andre Katie Price M1

We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy long-term Treasury bonds. Our article also called for a total international travel ban. While we were warning you, President Trump minimized the threat and failed to act promptly.

As a result of his inaction, we will now experience a deeper recession (10 coronavirus predictions). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. Keeping this in mind, let's take a look at whether Tapestry, Inc. (NYSE:TPR) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds' picks don't beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk. Is Tapestry, Inc. (NYSE:TPR) a healthy stock for your portfolio? The smart money is betting on the stock. The number of long hedge fund bets inched up by 14 in recent months. Our calculations also showed that TPR isn't among the 30 most popular stocks among hedge funds (click for Q4 rankings and see the video at the end of this article for Q3 rankings). At the moment there are many signals stock market investors use to analyze publicly traded companies. A couple of the less known signals are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the elite money managers can outpace the broader indices by a significant margin (see the details here). [caption id="attachment_673876" align="aligncenter" width="400"] John Overdeck of Two Sigma Advisors[/caption] John Overdeck of Two Sigma More We leave no stone unturned when looking for the next great investment idea. For example we recently identified a stock that trades 25% below the net cash on its balance sheet. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences, and go through short-term trade recommendations like this one. We even check out the recommendations of services with hard to believe track records. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic's significance before most investors. Now we're going to take a peek at the recent hedge fund action regarding Tapestry, Inc. What have hedge funds been doing with Tapestry, Inc. (NYSE:TPR)? At the end of the fourth quarter, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, a change of 54% from the previous quarter. The graph below displays the number of hedge funds with bullish position in TPR over the last 18 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were upping their stakes significantly (or already accumulated large positions). Is TPR A Good Stock To Buy?