Is ACI Worldwide Inc (ACIW) Going To Burn These Hedge Funds?

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Because ACI Worldwide Inc (NASDAQ:ACIW) has faced declining sentiment from the aggregate hedge fund industry, we can see that there is a sect of hedge funds who sold off their entire stakes heading into Q4. At the top of the heap, Paul Marshall and Ian Wace’s Marshall Wace LLP cut the biggest stake of all the investors followed by Insider Monkey, comprising an estimated $1.2 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also dumped its stock, about $0.4 million worth of ACIW shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as ACI Worldwide Inc (NASDAQ:ACIW) but similarly valued. These stocks are Nord Anglia Education Inc (NYSE:NORD), Tenet Healthcare Corp (NYSE:THC), Pegasystems Inc. (NASDAQ:PEGA), and Inovalon Holdings Inc (NASDAQ:INOV). This group of stocks’ market caps are closest to ACIW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NORD 7 147106 1
THC 39 759241 0
PEGA 16 223417 -4
INOV 4 2747 -2

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $283 million. That figure was $159 million in ACIW’s case. Tenet Healthcare Corp (NYSE:THC) is the most popular stock in this table. On the other hand Inovalon Holdings Inc (NASDAQ:INOV) is the least popular one with only 4 bullish hedge fund positions. ACI Worldwide Inc (NASDAQ:ACIW) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard THC might be a better candidate to consider taking a long position in.

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Disclosure: None




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