You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard for individual investors to make a proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Is Convergys Corporation (NYSE:CVG) a good investment now? Money managers are taking a bullish view. The number of long hedge fund positions advanced by 2 lately. At the end of this article we will also compare CVG to other stocks including F.N.B. Corp (NYSE:FNB), Sunedison Inc (NYSE:SUNE), and Chemed Corporation (NYSE:CHE) to get a better sense of its popularity.
According to most shareholders, hedge funds are seen as slow, outdated investment vehicles of years past. While there are greater than 8,000 funds in operation at the moment, we hone in on the elite of this group, about 700 funds. These money managers manage the majority of the hedge fund industry’s total asset base, and by shadowing their inimitable investments, Insider Monkey has found many investment strategies that have historically outperformed the broader indices. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points a year for a decade in their back tests.
With all of this in mind, we’re going to take a glance at the new action regarding Convergys Corporation (NYSE:CVG).
How have hedgies been trading Convergys Corporation (NYSE:CVG)?
At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, an 11% increase from the second quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially (or had already accumulated large positions).
Of the funds tracked by Insider Monkey, AQR Capital Management, managed by Cliff Asness, holds the largest position in Convergys Corporation (NYSE:CVG). AQR Capital Management has a $36.9 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting in the 2 spot is Gotham Asset Management, led by Joel Greenblatt, holding a $30.9 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish comprise Amy Minella’s Cardinal Capital, Chuck Royce’s Royce & Associates, and D E Shaw.