Xerox Corporation (XRX): Are Hedge Funds Right About This Stock?

Consequently, key hedge funds were leading the bulls’ herd. OZ Management, managed by Daniel S. Och, assembled the biggest call position in Xerox Corporation (NYSE:XRX). According to its latest 13F filing, the fund had $74.1 million invested in the company at the end of the quarter. Brian Jackelow’s SAB Capital Management also initiated a $43.7 million position during the quarter. The following funds were also among the new XRX investors: Daniel S. Och’s OZ Management, Israel Englander’s Millennium Management, and Neil Chriss’s Hutchin Hill Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Xerox Corporation (NYSE:XRX) but similarly valued. We will take a look at Textron Inc. (NYSE:TXT), MGM Resorts International (NYSE:MGM), Goldcorp Inc. (USA) (NYSE:GG), and Grifols SA, Barcelona (NASDAQ:GRFS). This group of stocks’ market values resemble XRX’s market value.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $1.03 billion. XRX managed to attract only $548 million of the hedgies’ money. MGM Resorts International (NYSE:MGM) is the most popular stock in this table, while Grifols SA, Barcelona (NASDAQ:GRFS) is the least popular one with only 14 bullish hedge fund positions. Xerox Corporation (NYSE:XRX) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MGM might be a better candidate to consider a long position.