Is Amdocs Limited (DOX) A Good Stock To Buy?

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As industrywide interest jumped, some big names have been driving this bullishness. Chilton Investment Company, managed by Richard Chilton, established the most outsized position in Amdocs Limited (NYSE:DOX). Chilton Investment Company had $57.7 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $6.3 million position during the quarter. The other funds with new positions in the stock are Peter Muller’s PDT Partners, Thomas Bailard’s Bailard Inc, and Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Amdocs Limited (NYSE:DOX) but similarly valued. We will take a look at NetApp Inc. (NASDAQ:NTAP), Masco Corporation (NYSE:MAS), Advanced Semiconductor Engineering (ADR) (NYSE:ASX), and LKQ Corporation (NASDAQ:LKQ). All of these stocks’ market caps resemble DOX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NTAP 26 318484 0
MAS 38 1335892 5
ASX 13 101863 -4
LKQ 35 694854 7

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $613 million. Masco Corporation (NYSE:MAS) is the most popular stock in this table, while Advanced Semiconductor Engineering (ADR) (NYSE:ASX) is the least popular one with only 13 bullish hedge fund positions. By comparison, hedge funds amassed $603 million worth of Amdocs Limited (NYSE:DOX)’s shares and even though it is not the least popular stock in this group, the 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 MAS might be a better candidate to consider a long position.

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