Last year we predicted the occurrence of the first US recession since 2009, predicting the market in (Recession is imminent: we need a travel ban NOW). In these volatile markets, we review filings from hedge funds to gauge which direction each stock could head in. In this article, we’ll look at the sentiment of hedge funds towards DXC Technology Company (NYSE:DXC).
Is DXC technology company (NYSE:DXC) the right investment these days? Smart money reduced their exposure. The number of long hedge fund positions has been reduced by eleven in the last few months. DXC technology company (NYSE:DXC) was in the portfolios of 28 hedge funds at the end of March. The all-time high of this statistic is 60. Our calculations also showed that DXC is not one of the The 30 most popular stocks among hedge funds (Click for Q1 rankings).
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Do hedge funds think DXC is a good stock to buy now?
At the end of March, a total of 28 of the hedge funds monitored by Insider Monkey were optimistic about this stock, a change of -28% from the previous quarter. The following graph shows the number of hedge funds with bullish positions in the DXC over the past 23 quarters. Since hedge positions are subject to their usual ups and downs, there is an “upper tier” of notable hedge fund managers who have significantly increased their holdings (or have already built large positions).
The largest stake in DXC Technology Company (NYSE: DXC) was held by Glenview capital, which held shares valued at $ 330.8 million at the end of December. This was followed by Point72 Asset Management with a position of $ 235 million. Other investors optimistic about the company included Miller Value Partners, Arrowstreet Capital, and Two Sigma Advisors. In terms of portfolio weights assigned to each position, Glenview Capital gave DXC Technology Company (NYSE: DXC) the largest weight, approximately 5.6% of its 13F portfolio. Miller Value Partner is also relatively bullish on the stock, distributing 4.24 percent of its 13F stock portfolio to DXC.
Judging by the fact that DXC Technology Company (NYSE: DXC) has faced bearish sentiment on all of the hedge funds we track, it’s easy to see that there was a certain group of hedgies who took their positions up to and including End of the first fully reduced quarter. Fascinating, Renaissance technologies the largest proportion of the 750 funds tracked by Insider Monkey, with a share value of approximately $ 15.6 million. Robert Pohly’s fund, Samlyn Capital, also bid farewell to its approximately $ 13.9 million stock. These moves are fascinating to say the least, as overall interest in hedge funds had dropped 11 funds by the end of the first quarter.
Now let’s look at hedge fund activity in other stocks similar to DXC Technology Company (NYSE: DXC). We will join Syneos Health, Inc. (NASDAQ:SYNH), Federal Realty Investment Trust (NYSE:FRT), Voya Financial Inc (NYSE:VOYA), Luminar Technologies, Inc. (NASDAQ:LAZR), ITT Inc. (NYSE:HERE), Jabil Inc. (NYSE:JBL) and Yatsen Holding Limited (NYSE:SCHOOL). The market values of this group of stocks are similar to the market value of DXC.
[table] Ticker, number of HRs with positions, total value of HR positions (x1000), change of HR position SYNH, 28.460253, -1 FRT, 16.43276, -1 VOYA, 42.1031020, -2 LAZR, 12.39243, -13 ITT, 18, 264004, -10 JBL, 24.466622, -4 YSG, 20.224997, -6 average, 22.9.361345, -5.3 [/table]
See table here when formatting problems occur.
As you can see, these stocks averaged 22.9 hedge funds with bullish positions and the average amount invested in these stocks was $ 361 million. In the case of DXC, that number was $ 1,058 million. Voya Financial Inc (NYSE:VOYA) is the most popular stock in this table. On the other hand, Luminar Technologies, Inc. (NASDAQ:LAZR) is the least popular, with only 12 bullish hedge fund positions. DXC Technology Company (NYSE: DXC) isn’t the most popular stock in this group, but interest in hedge funds is still above average. Our hedge fund sentiment score for DXC is 34.7 overall. Stocks with a higher number of hedge fund positions relative to other stocks and relative to their historical range receive a higher sentiment score. Our calculations have shown that Top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 40 percentage points. These stocks rose 24% through July 9 in 2021, still outperforming the market by 6.7 percentage points. Hedge funds were also right to bet on DXC, as the stock had returned 27.1% since the end of the first quarter (through 9/7) and outperformed the market. Hedge funds have been rewarded for their relative bullish stance.
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Disclosure: None. This article was originally published at Insider monkey.