Should You Buy Xerox Corporation (NYSE:XRX)?

As aggregate interest increased, some big names have jumped into Xerox Corporation (NYSE:XRX) headfirst. BlueCrest Capital Mgmt., managed by Michael Platt and William Reeves, assembled the most valuable position in Xerox Corporation (NYSE:XRX). BlueCrest Capital Mgmt. had $6.8 million invested in the company at the end of the quarter. Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners also initiated a $2.8 million position during the quarter. The following funds were also among the new XRX investors: Scott Fine and Peter Richards’ Empire Capital Management, Ken Griffin’s Citadel Investment Group, and John A. Levin’s Levin Capital Strategies.

Let’s also examine hedge fund activity in other stocks similar to Xerox Corporation (NYSE:XRX). These stocks are CarMax, Inc (NYSE:KMX), Huaneng Power International Inc (ADR) (NYSE:HNP), Hanesbrands Inc. (NYSE:HBI), and XL Group plc (NYSE:XL). This group of stocks’ market caps match XRX’s market cap.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $610 million. That figure was $1.5 billion in XRX’s case. CarMax, Inc (NYSE:KMX) is the most popular stock in this table. On the other hand Huaneng Power International Inc (ADR) (NYSE:HNP) is the least popular one with only 1 bullish hedge fund positions. Xerox Corporation (NYSE:XRX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KMX might be a better candidate to consider a long position.

Disclosure: None