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General Dynamics Corporation (GD), EMC Corporation (EMC) & Hedge Funds’ 10 Favorite Cybersecurity Players

Throughout the daily news, we often run across stories of hackers stealing money electronically, or breaking into a database and lifting important information. If it was not for the companies that develop cybersecurity products, such kinds of stories may make headlines more often. In fact, in the era where IT is involved in essentially every aspect of our day-to-day lives, players like General Dynamics Corporation (NYSE:GD), EMC Corporation (NYSE:EMC), and Raytheon Company (NYSE:RTN) are generating solid revenues, and can be grouped together accordingly.

General Dynamics Corporation (NYSE:GD)

For example, in EMC’s quarterly financial report, it was revealed that the company earned about $232,300 from its RSA information security business, 12% higher than a year earlier.

Even though these numbers are relatively small compared to the overall revenue of EMC Corporation (NYSE:EMC), we must heed to COO David Goulden’s words about his company’s future: “With continued steady execution, we expect that EMC will achieve our previously stated longer-term potential of more than $30 billion in revenue in 2016 with non-GAAP EPS growth outpacing revenue growth during this timeframe,” and it’s safe to say that cybersecurity will be a key aspect of this boom.

With regard to General Dynamics Corporation (NYSE:GD), on the other hand, we can see that according to a statement issued by the company itself, first-quarter revenue from information systems and technology, (which includes cybersecurity) amounted to some $2.4 billion.

Now, investment opportunities in this space could be screened by metrics such as P/E multiples, PEG ratios, or dividend yield, among others, but one key indicator that flies under the radar is hedge fund sentiment. Empirical analysis has shown that piggyback investors can generate market outperformance if they know where to look, to the tune of 18 percentage points each year; see the details for yourself.

With that being said, we’ve compiled a list of hedge funds’ top ten cybersecurity stocks, which include EMC Corporation (NYSE:EMC) and General Dynamics Corporation (NYSE:GD), to see where the smart money is placing their capital.

Continue reading the list on the following pages: