Does Xerox Corporation (NYSE:XRX) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.
Xerox Corporation (NYSE:XRX) investors should be aware of an increase in enthusiasm from smart money of late. XRX was in 32 hedge funds’ portfolios at the end of September. There were 31 hedge funds in our database with XRX holdings at the end of the previous quarter. At the end of this article we will also compare XRX to other stocks including CarMax, Inc (NYSE:KMX), Huaneng Power International Inc (ADR) (NYSE:HNP), and Hanesbrands Inc. (NYSE:HBI) to get a better sense of its popularity.
Follow Xerox Corp (NYSE:XRX)
Follow Xerox Corp (NYSE:XRX)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
With all of this in mind, we’re going to take a look at the fresh action surrounding Xerox Corporation (NYSE:XRX).
What have hedge funds been doing with Xerox Corporation (NYSE:XRX)?
At Q3’s end, a total of 32 of the hedge funds tracked by Insider Monkey held long positions in this stock, a rise of 3% from the second quarter of 2016. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Icahn Capital LP, managed by Carl Icahn, holds the number one position in Xerox Corporation (NYSE:XRX). Icahn Capital LP has a $1.00 billion position in the stock, comprising 5.1% of its 13F portfolio. The second largest stake is held by AQR Capital Management, managed by Cliff Asness, which holds a $138.2 million position. Some other peers that are bullish encompass Anand Parekh’s Alyeska Investment Group, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Jim Simons’ Renaissance Technologies.
