Should You Invest in SS and C Technologies (SSNC)?

Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap” fourth quarter 2020 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap, Small Cap and All Cap strategies beat both their primary and secondary benchmarks, while Focus and Focus Plus trailed their primary benchmarks but beat their secondary benchmarks. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Vulcan Value Partners, in their Q4 2020 investor letter, mentioned SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) and emphasized their views on the company. SS&C Technologies Holdings, Inc. is a Windsor, Connecticut-based financial technology company that currently has a $17.7 billion market capitalization. Since the beginning of the year, SSNC delivered a -5.72% return, while its 12-month gains are still up by 56.53%. As of March 29, 2021, the stock closed at $68.85 per share.

Here is what Vulcan Value Partners has to say about SS&C Technologies Holdings, Inc. in their Q4 2020 investor letter:

“SS&C Technologies Holdings Inc. is the leading provider of services to the financial sector. It owns several companies including ALPS Fund Services, Advent, GlobeOp, Intralinks, Eze, and DST. It operates an array of technology offerings for the financial services industry and provides mission-critical software. We like the company’s recurring revenue, high retention rates, strong free cash flow generation, and high rates of return on capital. Regulatory pressure, the need for greater transparency, and the growth of its core asset classes have led to greater demand for its services.”

Ghost Tree Capital's AUM, Returns and Holdings

everything possible/

Our calculations show that SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, SS&C Technologies Holdings, Inc. was in 49 hedge fund portfolios, compared to 54 funds in the third quarter. SSNC delivered a decent -4.59% return in the past 3 months.