It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. The Standard and Poor’s 500 Index returned 5.2% over the 12-month period ending October 30, while more than 51% of the constituents of the index underperformed the benchmark. Hence, a random stock picking process will most likely lead to disappointment. At the same time, the 30 most favored S&P 500 stocks by the hedge funds monitored by Insider Monkey (as of September 2014) generated a return of 9.5% over the same time span, with 63% of these stocks outperforming the benchmark. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized in financial media, but piggybacking their moves can beat the broader market on average. That’s why we are going to go over recent hedge fund activity in CA, Inc. (NASDAQ:CA).
CA, Inc. (NASDAQ:CA) shareholders have witnessed a decrease in hedge fund sentiment lately. At the end of this article we will also compare CA to other stocks including Nucor Corporation (NYSE:NUE), Spectra Energy Partners, LP (NYSE:SEP), and Liberty Media Corp (NASDAQ:LMCA) to get a better sense of its popularity.
At the moment there are plenty of methods stock traders have at their disposal to analyze publicly traded companies. A duo of the most underrated methods is composed of hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the best fund managers can trounce their index-focused peers by a very impressive margin (see the details here).
With all of this in mind, let’s take a gander at the recent action encompassing CA, Inc. (NASDAQ:CA).
Hedge fund activity in CA, Inc. (NASDAQ:CA)
Heading into Q4, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Huber Capital Management, managed by Joe Huber, holds the biggest position in CA, Inc. (NASDAQ:CA). Huber Capital Management has a $83.1 million position in the stock, comprising 2.9% of its 13F portfolio. The second most bullish fund manager is AQR Capital Management, managed by Cliff Asness, which holds a $74.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions encompass David Harding’s Winton Capital Management, Joel Greenblatt’s Gotham Asset Management and Ray Dalio’s Bridgewater Associates.