Hedge Funds Are Buying NCR Corporation (NCR)

You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.

NCR Corporation (NYSE:NCR) has experienced an increase in activity from the world’s largest hedge funds lately. NCR was in 27 hedge funds’ portfolios at the end of September. There were 22 hedge funds in our database with NCR holdings at the end of the previous quarter. At the end of this article we will also compare NCR to other stocks including WEX Inc (NYSE:WEX), Corelogic Inc (NYSE:CLGX), and Cabelas Inc (NYSE:CAB) to get a better sense of its popularity.

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.

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How are hedge funds trading NCR Corporation (NYSE:NCR)?

At Q3’s end, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a gain of 23% from the second quarter of 2016. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, David Cohen and Harold Levy’s Iridian Asset Management has the largest position in NCR Corporation (NYSE:NCR), worth close to $80.7 million. On Iridian Asset Management’s heels is D. E. Shaw of D E Shaw, with a $40.6 million position. Remaining professional money managers that are bullish contain Mario Gabelli’s GAMCO Investors, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Marc Majzner’s Clearline Capital.