Is Xerox Corporation (NYSE:XRX) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes, but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Xerox Corporation (NYSE:XRX) investors should be aware of an increase in enthusiasm from smart money lately. XRX was in 33 hedge funds’ portfolios at the end of the third quarter of 2015. There were 30 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 Textron Inc. (NYSE:TXT), MGM Resorts International (NYSE:MGM), and Goldcorp Inc. (USA) (NYSE:GG) to get a better sense of its popularity.
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To most market participants, hedge funds are viewed as slow, old financial tools of years past. While there are more than an 8000 funds trading today, We hone in on the moguls of this club, approximately 700 funds. These investment experts have their hands on bulk of the hedge fund industry’s total asset base, and by monitoring their highest performing picks, Insider Monkey has spotted a number of investment strategies that have historically surpassed Mr. Market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, let’s check out the new action surrounding Xerox Corporation (NYSE:XRX).
What does the smart money think about Xerox Corporation (NYSE:XRX)?
At the end of the third quarter, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 10% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, AQR Capital Management, managed by Cliff Asness, holds the number one position in Xerox Corporation (NYSE:XRX), worth an estimated $89.5 million and comprising 0.2% of its 13F portfolio. On AQR Capital Management’s heels is Winton Capital Management, managed by David Harding, which holds a $81.2 million position; 0.6% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism include Daniel S. Och’s OZ Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Brian Jackelow’s SAB Capital Management.