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Hedge Funds Are Betting On Oracle Corporation (ORCL)

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Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. These stocks have been on a tear since the end of June, outperforming large-cap index funds by more than 10 percentage points. That’s why we pay special attention to hedge fund activity in these stocks.

In this article, we are going to take a closer look at the hedge fund sentiment towards Oracle Corporation (NASDAQ:ORCL). At the end of September, there were 56 funds from our database holding shares of the company, up by three from the end of the previous quarter. However, to get a better sense of its popularity, we will compare Oracle to other stocks including Fomento Economico Mexicano SAB (ADR) (NYSE:FMX), Visa Inc (NYSE:V), and Merck & Co., Inc. (NYSE:MRK) at the end of this article.

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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

Oracle ORCL

Ken Wolter/shutterstock.com

With all of this in mind, let’s take a look at the recent action surrounding Oracle Corporation (NASDAQ:ORCL).

How have hedgies been trading Oracle Corporation (NASDAQ:ORCL)?

As stated earlier, at the end of the third quarter, 56 funds tracked by Insider Monkey were bullish on Oracle Corporation, an increase of 6% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).

HedgeFundSentimentChart

Of the funds tracked by Insider Monkey, Boykin Curry’s Eagle Capital Management has the biggest position in Oracle Corporation (NASDAQ:ORCL), worth close to $1.6789 billion, comprising 7.2% of its total 13F portfolio. Coming in second is First Pacific Advisors LLC, managed by Robert Rodriguez and Steven Romick, which holds a $858.9 million position; the fund has 7.1% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism consist of Donald Yacktman’s Yacktman Asset Management, Ken Fisher’s Fisher Asset Management, and Richard S. Pzena’s Pzena Investment Management.

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