Genpact Limited (G): Are Hedge Funds Right About This Stock?

We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Ackman’s recent Valeant losses). However, it is still good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Genpact Limited (NYSE:G).

Genpact Limited (NYSE:G) has experienced a decrease in support from the world’s most elite money managers of late. G was in 17 hedge funds’ portfolios at the end of the third quarter of 2015. There were 22 hedge funds in our database with G positions at the end of the previous quarter. At the end of this article we will also compare G to other stocks including ADT Corp (NYSE:ADT), FireEye Inc (NASDAQ:FEYE), and Edgewell Personal Care Company (NYSE:EPC) to get a better sense of its popularity.

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With all of this in mind, we’re going to check out the key action encompassing Genpact Limited (NYSE:G).

What does the smart money think about Genpact Limited (NYSE:G)?

At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of -23% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Eminence Capital, managed by Ricky Sandler, holds the largest position in Genpact Limited (NYSE:G). Eminence Capital has a $189.4 million position in the stock, comprising 2.9% of its 13F portfolio. Coming in second is D E Shaw, holding a $51.2 million position; 0.1% of its 13F portfolio is allocated to the company. Other members of the smart money that are bullish consist of Richard S. Pzena’s Pzena Investment Management, Cliff Asness’ AQR Capital Management and Ken Fisher’s Fisher Asset Management.