Armistice Capital, the New York-based event-driven hedge fund managing over $7.3 billion in 13F securities, is sharpening its focus on U.S. retail equities. The firm recently increased its holdings in key retail chains, signaling a confident bet on consumer discretionary stocks as inflation moderates and consumer spending rebounds.

According to Q4 2024 filings, Armistice acquired an additional 104,690 shares of Ross Stores, Inc. (NASDAQ: ROST), adding to its prior position of 485,000 shares. The fund also initiated or expanded positions in Foot Locker (NYSE: FL) and Best Buy Co., Inc. (NYSE: BBY)—highlighting a deliberate pivot toward retail stocks with strong omnichannel capabilities and improving fundamentals.

Ross Stores’ off-price model and operational efficiency continue to resonate with value-conscious consumers,” a representative from Armistice noted. “We're seeing an opportunity for retail names to outperform as supply chains stabilize and promotional pricing boosts traffic.

Increased interest from other institutional investors supports Armistice’s view. Vanguard, BlackRock, and State Street hold over 86% of Ross Stores’ shares, while Foot Locker has seen major stake increases from Point72 Asset Management and Stifel Financial. These moves reflect confidence in the long-term growth and adaptability of select U.S. retailers.

Notably, Armistice also initiated a new position in Best Buy, purchasing 87,677 shares in Q4. Best Buy’s strong brand loyalty, competitive e-commerce platform, and leadership in electronics retailing make it a strategic fit as the fund seeks exposure to tech-integrated consumer goods.

This wave of investment comes amid broader optimism for the retail sector. With inflation pressures easing and labor markets stabilizing, consumer sentiment has seen a gradual recovery. Retailers with lean inventory strategies, loyalty programs, and localized assortments are gaining traction—a trend Armistice appears eager to capitalize on.

Looking ahead, Armistice is expected to continue monitoring performance across the retail space, with potential for further capital allocation to companies that demonstrate margin resilience, digital innovation, and strong foot traffic. The fund’s agile strategy positions it to benefit from sectoral shifts while maintaining downside protection through diversification.

About Armistice Capital:

Armistice Capital is a long/short, event-driven hedge fund based in New York City. With more than $7 billion under management, the firm focuses on fundamental research and disciplined portfolio construction across sectors, including healthcare, consumer, and technology. Armistice is known for identifying mispriced securities and adjusting holdings proactively in response to market signals.

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