Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

First Data Corp (FDC): Hedge Funds Can’t Get Enough

We can judge whether First Data Corp (NYSE:FDC) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, research shows that these picks historically outperformed the market when we factor in known risk factors.

Is First Data Corp (NYSE:FDC) a bargain? The smart money is actually becoming hopeful. The number of bullish hedge fund positions that are disclosed in regulatory 13F filings improved by 3 recently. At the end of this article we will also compare FDC to other stocks including Cenovus Energy Inc (USA) (NYSE:CVE), Pembina Pipeline Corp (NYSE:PBA), and Ameren Corp (NYSE:AEE) to get a better sense of its popularity.

Follow First Data Corp
Trade (FDC) Now!

We care about hedge fund sentiment because historically hedge funds’ stock picks delivered strong risk adjusted returns. There are certain segments of the market where hedge funds’ stock picks performed much better than its benchmarks. For instance, the 30 most popular mid-cap stocks among the best performing hedge funds returned 18% over the last 12 months outpacing S&P 500 Index by more than 10 percentage points. We developed this strategy 2.5 years ago and started sharing its picks in our quarterly newsletter. It bested the S&P 500 Index ETFs by delivering a solid 39% vs. 22% gain for its benchmarks.

pocket, paper currency, biz, stock exchange, money to burn, success, paying, exchange rate, chocolate gelt, abundance, flowing, coin, european union currency, home finances, currency


What does the smart money think about First Data Corp (NYSE:FDC)?

At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey were long this stock, a 9% rise from the previous quarter. The graph below displays the number of hedge funds with bullish position in FDC over the last 5 quarters, which shows a rapid ascent for the stock, which went public in Q4 2015. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).


According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Leon Cooperman’s Omega Advisors has the number one position in First Data Corp (NYSE:FDC), worth close to $170.5 million, amounting to 5.3% of its total 13F portfolio. On Omega Advisors’ heels is Brahman Capital, led by Peter Adam Hochfelder, holding a $152 million position; the fund has 5.3% of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism comprise Larry Robbins’ Glenview Capital, Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management, and Richard Barrera’s Roystone Capital Partners. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.