Here’s Why Weitz Investment Trimmed its ACI Worldwide (ACIW) Position

Weitz Investment Management, an investment management firm, published its “Hickory Fund” fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 18.15% was recorded by the fund in the fourth quarter of 2020, slightly below its Russell Midcap benchmark that delivered a 19.91% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Weitz Investment Management, in their Q4 2020 investor letter, mentioned ACI Worldwide, Inc. (NASDAQ: ACIW) and emphasized their views on the company. ACI Worldwide, Inc. is a Watford, United Kingdom-based global payment software company that currently has a $4.5 billion market capitalization. Since the beginning of the year, ACIW delivered a -1.14% return, while its 12-month gains are still up by 57.31%. As of March 30, 2021, the stock closed at $37.99 per share.

Here is what Weitz Investment Management has to say about ACI Worldwide, Inc. in their Q4 2020 investor letter:

“Portfolio gains were led this quarter by ACI Worldwide. We have long held that ACI’s key banking and payments services have been underappreciated. During the quarter, a well-known activist investor in the technology and payments sector went public with a similar thesis, asking management to realize that value via a sale of the company. We have trimmed our holdings to manage the size of the position and the potential risk that a deal may not materialize.”

Our calculations show that ACI Worldwide, Inc. (NASDAQ: ACIW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, ACI Worldwide, Inc. was in 30 hedge fund portfolios, compared to 29 funds in the third quarter. ACIW delivered a 0.38% return in the past 3 months.