Amdocs Limited (DOX): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, specific money managers have jumped into Amdocs Limited (NYSE:DOX) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the most valuable position in Amdocs Limited (NYSE:DOX). Adage Capital Management had $13 million invested in the company at the end of the quarter. Alec Litowitz and Ross Laser’s Magnetar Capital also made a $0.8 million investment in the stock during the quarter. The other funds with brand new DOX positions are Joel Greenblatt’s Gotham Asset Management, Ken Griffin’s Citadel Investment Group, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Amdocs Limited (NYSE:DOX) but similarly valued. These stocks are Cemex SAB de CV (ADR) (NYSE:CX), Juniper Networks, Inc. (NYSE:JNPR), CDK Global Inc (NASDAQ:CDK), and The Valspar Corporation (NYSE:VAL). This group of stocks’ market valuations match DOX’s market valuation.

As you can see these stocks had an average of 29.75 hedge funds with bullish positions and the average amount invested in these stocks was $1078 million. That figure was $603 million in DOX’s case. CDK Global Inc (NASDAQ:CDK) is the most popular stock in this table. On the other hand Cemex SAB de CV (ADR) (NYSE:CX) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks Amdocs Limited (NYSE:DOX) is even less popular than CX. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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