It’s A Red Day for Digital Ally, Monster Worldwide, Och-Ziff, More

Leidos Holdings Down Despite Contract Announcement

Leidos Holdings, Inc. (NYSE:LDOS) has retreated by 7% today despite the company being awarded a prime contract by the Office of Naval Research to provide technical solutions for the Electromagnetic Maneuver Warfare Command and Control program. Leidos is one of 12 contractor companies eligible to compete for task orders under the contract, which has a total max contract value of $900 million for all awardees. Given the stock’s recent surge leading into the announcement, the sell-off today looks like a typical ‘buy the rumor, sell the news’ event. The number of funds in our database with long positions in Leidos Holdings, Inc. (NYSE:LDOS) rose by three quarter-over-quarter to 23 as of the end of March.

Analysts Downgrade Och-Ziff 

Och-Ziff Capital Management Group LLC (NYSE:OZM) is 5% in the red today after analysts at KBW downgraded the stock to ‘Market Perform’ from ‘Outperform’. Due to their hedged nature, some hedge funds have lagged the bull market, causing investors to initiate redemptions that might lower a hedge fund’s total income. The hedge fund industry managed $2.86 trillion in assets on March 31, below its all-time high of over $3.1 trillion. Shares of Och-Ziff have not done well this year, falling by 41% year-to-date. 15 elite funds that we track owned shares of Och-Ziff Capital Management Group LLC (NYSE:OZM) as of the most recent 13F reporting period, unchanged from the prior reporting period.

DRDGOLD Does a U-Turn 

After being down by over 5% at one point, DRDGOLD Ltd. (ADR) (NYSE:DRD) shares have rallied back into positive territory in afternoon trading. Traders are buying the stock due to the positive gold spot price, which as of this moment trades for $1359.50 per ounce. Some traders are buying gold in anticipation of a potential global recession in the future. Others are just buying due to the potential of a geopolitical conflict in the South China Sea or on the potential of an uprising in the Middle East. Five elite funds were bullish on DRDGOLD Ltd. (ADR) (NYSE:DRD) at the end of the first quarter.

Disclosure: None