Hedge Fund Heavyweight Goes Bullish on Retail Stock

Tenzing Global Management, LLC disclosed a new position in American Eagle Outfitters (NYSE:AEO) as of September 30, 2025, adding 437,500 shares valued at $7,485,625.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, 2025, Tenzing Global Management, LLC initiated a new position in American Eagle Outfitters, acquiring 437,500 shares. The estimated value of the stake at quarter-end totaled $7.49 million, accounting for roughly 4.12% of the manager’s $181.74 million in reportable U.S. equity assets.

What Else to Know

This is a new position for Tenzing Global Management, LLC, making up 4.12% of its reportable assets under management.

Top holdings after the filing:

• NASDAQ: NTGR: $16,195,000 (11.4% of AUM)
• NASDAQ: FOXF: $12,145,000 (8.5% of AUM)
• NASDAQ: GOGO: $10,093,250 (7.1% of AUM)
• NYSE: YEXT: $9,798,000 (6.9% of AUM)
• NYSE: HLF: $8,967,500 (6.3% of AUM)

As of November 14, 2025, shares of American Eagle Outfitters were priced at $17.56, up 0.29% over the past year; shares have underperformed the S&P 500 by 12.85 percentage points.

Company Overview

Company Snapshot

American Eagle Outfitters, Inc. is a leading specialty retailer with a broad omni-channel presence, operating hundreds of stores and robust e-commerce platforms.

• Offers apparel, accessories, and personal care products under the American Eagle and Aerie brands, with additional offerings from Tailgate and Todd Snyder New York.
• Operates a specialty retail model generating revenue through company-owned stores, e-commerce platforms, and international licensing partnerships.
• Targets teens and young adults in North America and select international markets, appealing to fashion-forward and value-oriented consumers.

Foolish Take

Tenzing Global Management, a California-based hedge fund, recently disclosed the acquisition of approximately $7.5 million worth of American Eagle Outfitters stock. Here's what it could mean for average investors.

To begin, American Eagle stock hasn't been a superstar performer on the stock market. In fact, it's underperformed for at least the last ten years. Dating back to 2015, American Eagle stock has generated a total return of 58%, equating to a compound annual growth rate (CAGR) of 4.7%. Meanwhile, the S&P 500 has generated a total return of 290% over that same period, with a CAGR of 14.6%.

Nevertheless, Tenzing's big purchase of American Eagle shouldn't be ignored. The hedge fund has loaded up on shares of the popular clothing retailer at an interesting time. American Eagle has launched high-profile marketing campaigns with actress Sydney Sweeney and NFL star Travis Kelce. Moreover, the company's Aerie brand has demonstrated solid organic growth during the second quarter of 2025.

Lastly, Tenzing's purchase could be seen as a bet on easing trade tensions -- as high tariffs put pressure on American Eagle's profit margins.

In summary, retail investors should take note of this significant purchase of American Eagle stock by a large institutional player.

Glossary

13F reportable assets: U.S. equity holdings that institutional investment managers must disclose quarterly to the SEC using Form 13F.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or share an investor holds in a company.
Dividend yield: Annual dividends paid by a company divided by its current share price, expressed as a percentage.
Omni-channel: A retail strategy that integrates multiple sales channels, such as physical stores and online platforms, for a seamless customer experience.
Specialty retail: Stores or businesses focused on selling a specific category of products to a targeted customer segment.
Licensing partnerships: Agreements allowing other companies to sell products using a brand’s name, often in exchange for fees or royalties.
Quarter-end: The last day of a company’s fiscal quarter, used for financial reporting and valuation.
TTM: The 12-month period ending with the most recent quarterly report.

Jake Lerch has no position in any of the stocks mentioned. The Motley Fool recommends American Eagle Outfitters. The Motley Fool has a disclosure policy.