Alphyn Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -21.7% for the quarter, underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Alphyn Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Alphyn Capital highlighted a few stocks and Ceridian HCM Holding Inc. (NYSE:CDAY) is one of them. Ceridian is a global human capital management software company. Year-to-date, CDAY stock lost 7.4% and on May 12th it had a closing price of $64.85. Its market cap is of $9.13 billion. Here is what Alphyn Capital said:
“Ceridian is a SAAS-native payroll processor, run by an exceptional founder, serving mid to large size enterprises, that has been steadily winning business from legacy companies such as Automatic Data Processing due to its ability to calculate payroll in real time. This “continuous calculation” enables payroll administrators to access their data throughout the pay period and gives them more time for reviews and audits, minimizing unprocessed errors which have to be carried over and corrected in the next pay period. This core functionality has allowed the company to develop an employee electronic payment feature which it will roll out over the next few years, presenting a significant monetization opportunity as it expands into its large addressable international market. The share price more than doubled last year as I was in the midst of my diligence, but I refused to chase. However I had the opportunity to initiate, via short puts, a starter position in March. It is reasonable to assume the company’s prospects will be muted in the short term given the dramatic escalation in forced unemployment, so I will continue to monitor it closely.”
In Q4 2019, the number of bullish hedge fund positions on CDAY stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with CDAY’s upside potential.
Disclosure: None. This article is originally published at Insider Monkey.