The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. Hedge funds’ consensus stock picks performed spectacularly over the last 3 years, but 2022 hasn’t been kind to hedge funds. In this article we look at how hedge funds traded Xerox Holdings Corporation (NASDAQ:XRX) and determine whether the smart money was really smart about this stock.
Xerox Holdings Corporation (NASDAQ:XRX) has seen an increase in activity from the world’s largest hedge funds of late. Xerox Holdings Corporation (NASDAQ:XRX) was in 35 hedge funds’ portfolios at the end of September. The all time high for this statistic is 44. There were 25 hedge funds in our database with XRX holdings at the end of June. Our calculations also showed that XRX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind we’re going to check out the latest hedge fund action encompassing Xerox Holdings Corporation (NASDAQ:XRX).
Carl Icahn of Icahn Capital
Do Hedge Funds Think XRX Is A Good Stock To Buy Now?
At Q3’s end, a total of 35 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 40% from one quarter earlier. By comparison, 28 hedge funds held shares or bullish call options in XRX a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Icahn Capital LP, managed by Carl Icahn, holds the largest position in Xerox Holdings Corporation (NASDAQ:XRX). Icahn Capital LP has a $628.1 million position in the stock, comprising 2.8% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which holds a $82.4 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other members of the smart money that are bullish encompass Steve Cohen’s Point72 Asset Management, and Benjamin Pass’s TOMS Capital. In terms of the portfolio weights assigned to each position Mason Capital Management allocated the biggest weight to Xerox Holdings Corporation (NASDAQ:XRX), around 5.07% of its 13F portfolio. TOMS Capital is also relatively very bullish on the stock, designating 3.51 percent of its 13F equity portfolio to XRX.
With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Icahn Capital LP, managed by Carl Icahn, initiated the biggest position in Xerox Holdings Corporation (NASDAQ:XRX). Icahn Capital LP had $628.1 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $70.8 million investment in the stock during the quarter. The other funds with brand new XRX positions are Joseph Samuels’s Islet Management, Michael Rockefeller and KarláKroeker’s Woodline Partners, and Dmitry Balyasny’s Balyasny Asset Management.
Let’s check out hedge fund activity in other stocks similar to Xerox Holdings Corporation (NASDAQ:XRX). These stocks are Viavi Solutions Inc (NASDAQ:VIAV), Riskified Ltd. (NYSE:RSKD), frontdoor, inc. (NASDAQ:FTDR), Apple Hospitality REIT Inc (NYSE:APLE), Altra Industrial Motion Corp. (NASDAQ:AIMC), Box, Inc. (NYSE:BOX), and Resideo Technologies, Inc. (NYSE:REZI). This group of stocks’ market values are similar to XRX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VIAV | 23 | 228421 | -1 |
| RSKD | 16 | 59652 | 16 |
| FTDR | 36 | 574044 | 3 |
| APLE | 15 | 186645 | -1 |
| AIMC | 14 | 18481 | 8 |
| BOX | 29 | 644232 | -6 |
| REZI | 28 | 525837 | 0 |
| Average | 23 | 319616 | 2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $320 million. That figure was $987 million in XRX’s case. frontdoor, inc. (NASDAQ:FTDR) is the most popular stock in this table. On the other hand Altra Industrial Motion Corp. (NASDAQ:AIMC) is the least popular one with only 14 bullish hedge fund positions. Xerox Holdings Corporation (NASDAQ:XRX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for XRX is 81.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on XRX as the stock returned 5.8% since the end of Q3 (through 1/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Xerox Holdings Corp (NYSE:XRX)
Follow Xerox Holdings Corp (NYSE:XRX)
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Disclosure: None. This article was originally published at Insider Monkey.
