Alliance Data Systems Corporation (ADS)Hedge Funds Are Snapping Up

Consequently, some big names were breaking ground themselves. Melvin Capital Management, managed by Gabriel Plotkin, established the biggest position in Alliance Data Systems Corporation (NYSE:ADS). Melvin Capital Management had $25.9 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $20.6 million investment in the stock during the quarter. The other funds with brand new ADS positions are D. E. Shaw’s D E Shaw, Steve Cohen’s Point72 Asset Management, and Jim Simons’s Renaissance Technologies.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Alliance Data Systems Corporation (NYSE:ADS) but similarly valued. We will take a look at Northern Trust Corporation (NASDAQ:NTRS), Liberty Interactive Corp (NASDAQ:QVCA), International Paper Company (NYSE:IP), and Roper Industries, Inc. (NYSE:ROP). This group of stocks’ market values resemble ADS’s market value.

As you can see these stocks had an average of 37 hedge funds with bullish positions and the average amount invested in these stocks was $1.47 billion. That figure was $340 million in ADS’s case. Liberty Interactive Corp (NASDAQ:QVCA) is the most popular stock in this table, while Northern Trust Corporation (NASDAQ:NTRS) is the least popular one with only 22 bullish hedge fund positions. Alliance Data Systems Corporation (NYSE:ADS) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard QVCA might be a better candidate to consider a long position.