How Alliance Data Systems Corporation (ADS) Stacks Up Against Its Peers

Since Alliance Data Systems Corporation (NYSE:ADS) has witnessed a decline in interest from the entirety of the hedge funds we track, we can see that there is a sect of fund managers that decided to sell off their full holdings last quarter. Interestingly, Barry Rosenstein’s JANA Partners cut the biggest investment of all the hedgies followed by Insider Monkey, comprising about $132.3 million in stock. Steve Cohen’s fund, Point72 Asset Management, also sold off its stock, about $31.1 million worth of ADS shares. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 1 fund last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Alliance Data Systems Corporation (NYSE:ADS) but similarly valued. We will take a look at Motorola Solutions Inc (NYSE:MSI), Quest Diagnostics Inc (NYSE:DGX), Cenovus Energy Inc (USA) (NYSE:CVE), and Oneok Partners LP (NYSE:OKS). This group of stocks’ market values are similar to ADS’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MSI 28 1170738 -1
DGX 24 349248 -1
CVE 20 364500 -3
OKS 9 33692 2

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $480 million. That figure was $1.48 billion in ADS’ case. Motorola Solutions Inc (NYSE:MSI) is the most popular stock in this table. On the other hand Oneok Partners LP (NYSE:OKS) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Alliance Data Systems Corporation (NYSE:ADS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None