Should You Buy Automatic Data Processing, Inc. (ADP)?


<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Hedge fund managers like David Einhorn, Bill Ackman , or Carl Icahn has become a billionaire making big profits for his investors, which is why stock selection can also bring us significant returns.Several hedge funds, like Elliott Management by Paul Singer, are pretty secretive, but we can still get some information by analyzing their quarterly deposits 13 F. One of the most fertile foundations for high abnormal returns is the most popular choices of hedge funds, which are not as widely tracked and which 39, often trading for less than their intrinsic value Find out about hedge fund activity in another small-cap stock: Automatic Data Processing, Inc. (NASDAQ:ADP). "Data-reactid =" 11 "> Hedge fund managers such as David Einhorn, Bill Ackman and Carl Icahn have become billionaires, earning big profits for their investors, and that's why their choice of stocks can While many hedge funds, such as Paul Singer's Elliott Management, are quite secretive, we can still get some insights by analyzing their 13F quarterly filings.One of the most fertile foundations for significant abnormal returns is the The most popular choice of small-cap hedge funds, which in this article, we will examine the activity of hedge funds in another small-cap title: Automatic Data Processing, Inc. (NASDAQ: ADP).

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Automatic Data Processing, Inc. (NASDAQ:ADP) has recently experienced an increase in the interest of hedge funds. Our calculations also showed that ADP is not part of 30 most popular hedge fund stocks"data-reactid =" 12 ">Automatic Data Processing, Inc. (NASDAQ: ADP) has recently experienced an increase in the interest of hedge funds. Our calculations also showed that ADP is not among the 30 most popular hedge fund stocks.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to most shareholders, hedge funds are considered Tools Underperforming and obsolete financials from previous years While more than 8,000 funds are in operation today, we are looking at the elite of this group, about 750 funds.Most estimates suggest that this group of people orchestrates the majority of the assets of all smart money.In looking at its investments in first class shares, Insider Monkey has discovered many investment strategies that have always defeated the market.The flagship strategy of the hedge funds of Insider Monkey has outstripped the S & P 500 index by about 5 percentage points per year since its inception in May 2014. We were able to generate high returns even by identifying short-term candidates: our stock portfolio uvert has lost 25.7% since February 2017 (up to September 30th) even though the market had grown more than 33% over the same period. list of 10 & nbsp; short targets in our last quarterly update . "data-reactid =" 13 "> According to most shareholders, hedge funds are seen as obsolete and underperforming financial tools, and although there are currently more than 8,000 active funds, we look at the elite this group, around 750 According to most estimates, this group of people would orchestrate most of the total assets of smart money and, by watching its investments in first-class shares, Insider Monkey discovered many investment strategies that have historically defeated the market.The strategy has outperformed the S & P 500 by about 5 percentage points each year since its inception in May 2014. We have been able to generate high returns even by identifying candidates. short-term: our short equity portfolio has lost 25.7% since February 2017 (through September 30th), even though the market grew by more than 33% over the same period riode, we just shared a list of 10 short-term goals in our last quarterly update.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Unlike some fund managers who bet on Dow reaches 40,000 in one year, Our long-short investment strategy does not rely on bull markets to generate double-digit returns. We rely solely on buy / sell signals from hedge funds. Let's take a look at recent hedge fund action including Automatic Data Processing, Inc. (NASDAQ:ADP). "data-reactid =" 34 "> Unlike some fund managers who rely on Dow reaches 40,000 in one year, our long-short investment strategy does not rely on bull markets to generate double-digit returns We rely solely on buy / sell hedge fund signals. Let's take a look at recent hedge fund action including Automatic Data Processing, Inc. (NASDAQ: ADP).

What do hedge funds do with Automatic Data Processing, Inc. (NASDAQ: ADP)?

At the end of the second quarter, 43 hedge funds monitored by Insider Monkey held long positions on this stock, a 10% change from the previous quarter. The chart below shows the number of hedge funds having a bullish position in ADP during the last 16 quarters. Since hedged positions are subject to their usual fluctuations, there is a "superior level" of outstanding hedge fund managers who have significantly increased their holdings (or have already accumulated large positions).

Number of hedge funds with ADP positions

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "When we look at institutional investors followed by Insider Monkey, Bill Ackman & # 39; s Pershing Square holds the leading position in Automatic Data Processing, Inc. (NASDAQ: ADP), valued at nearly $ 666.2 million, or 9.9% of its total portfolio of 13F. Unfortunately, Ackman was exhausted in the third quarter, according to an investor letter seen by Insider Monkey. The second largest share is held by Cedar Rock Capitalmanaged by Andy Brown, which holds a position of $ 510.8 million; 12.1% of its 13F portfolio is allocated to the company. Other smart money members who hold long positions include Peter Rathjens, Bruce Clarke and Arrowstreet Capital of John Campbell, David Blood and Al Gore's. Generation of management investments and from Shaw. "data-reactid =" 57 "> As for institutional investors monitored by Insider Monkey, Bill Ackman's Pershing Square is in first place in Automatic Data Processing, Inc. (NASDAQ: ADP), with a value of nearly 666 , $ 2 million, which corresponds to 9.9% of its total portfolio of 13 F. Ackman unfortunately sold the stock during the third quarter, according to a letter to investors seen by Insider Monkey.The second largest stake is held by Cedar Rock Capital, led by Andy Brown, which holds a $ 510.8 million position, 12.1% of its 13F portfolio is allocated to the company Other smart money members who hold long positions include Peter Rathjens, Bruce Clarke and Arrowstreet Capital of John Campbell, David Blood and Al Gore of Generation Investment Management and DE Shaw.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As a result, the major hedge funds have dominated the trend Renaissance Technologies was the largest position in Automatic Data Processing, Inc. (NASDAQ: ADP), with Renaissance Technologies investing $ 26.2 million in the company at the end of the quarter. also invested $ 12.3 million Other funds with new positions in the stock are Richard Chilton's Chilton Investment Company, Michael Hintze's CQS Cayman LPand Stevens Capital Management by Matthew Tewksbury. "data-reactid =" 62 "> As a result, the leading hedge funds led the bull herd, Renaissance Technologies garnered the largest position in Automatic Data Processing, Inc. (NASDAQ: ADP) Renaissance Technologies Laurion Capital Management of Benjamin A. Smith had also invested $ 12.3 million in share capital during the quarter, the other funds offering new positions in this company being Chilton Investment Company of Richard Chilton, CQS Cayman LP of Michael Hintze and Stevens Capital Management of Matthew Tewksbury.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Now let's look at the activity of hedge funds in other shares – not necessarily in the same industry as Automatic Data Processing, Inc. (NASDAQ: ADP), but of the same value.We will review VMware, Inc. (NYSE:VMW), Intuit Inc. (NASDAQ:INTU), Becton, Dickinson and Company (NYSE:BDX) and Vale SA (NYSE:VALLEY). The market capitalization of this group of shares is similar to the market capitalization of ADP. "Data-reactid =" 63 "> Now let's look at hedge fund activity in other stocks, not necessarily in the same industry as Automatic Data Processing, Inc. (NASDAQ: ADP), but we're going to look at VMware, Inc. (NYSE: VMW), Intuit Inc. (NASDAQ: INTU), Becton, Dickinson and Company (NYSE: BDX) and Vale SA (NYSE: VALE) This market capitalization group is similar to the market capitalization of ADP.

(table) Ticker, Number of HFs with Positions, Total Value of HF Positions (x1000), HF Position Change VMW, 34,1324960,2 INTU, 46,2203004,4 BDX, 40,1254476,5 VALE, 21,1848374 , -1 average, 35,25,1657704,2,5 (/ table)

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "See the table here& nbsp; if you encounter formatting problems. "data-reactid =" 65 "> Display the table here if you are having formatting problems.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As you can see, these actions had an average of $ 35.25 million hedge funds with bullish positions and an average amount invested in these shares amounting to $ 2737 million in the case of ADP Intuit Inc. (NASDAQ:INTU) is the most popular action in this table. Vale SA (NYSE:VALLEY) is the least popular with only 21 positions of hedge funds. Automatic Data Processing, Inc. (NASDAQ: ADP) is not the most popular title in this group, but hedge fund interest is still above average. This is a slightly positive sign, but we would rather spend our time looking for stocks on which hedge funds accumulate. Our calculations showed that Top 20 most popular stocks among hedge funds, they posted a 24.4% return between 2019 and September 30 and outperformed the S & P 500 ETF (SPY) by 4 percentage points. Unfortunately, ADP was not as popular as those 20 stocks and hedge funds that were betting on ADP were disappointed, as the stock returned -1.9% in the third quarter and underperformed the market. If you want to invest in large cap stocks with significant upside potential, you should consult the Top 20 most popular stocks among hedge funds, many of these stocks have already outperformed the market this year. Video: Click on the image to view our video on the top 5 stocks of hedge funds."data-reactid =" 66 "> As you can see, these stocks had on average 35.25 hedge funds with bullish positions and the average amount invested in these shares was $ 1658 million. was $ 2737 million in the case of ADP Intuit Inc. (NASDAQ: INTU) is the most popular stock in this chart, while Vale SA (NYSE: VALE) is the least popular, with only 21 hedge fund positions Automatic Data Processing, Inc. (NASDAQ: ADP) ne This is a slightly positive sign, but we would rather spend our time looking for stocks on which hedge funds are piling up. showed that the 20 most popular shares among hedge funds The funds returned 24.4% in 2019 until September 30 and outperformed the S & P 500 ETF (SPY) by 4 percentage points, but ADP did not Was unfortunately not as popular as these 20 stocks and funds ADP, disappointed by the return of equities – 1.9% in the third quarter and underperforming the market. If you want to invest in large-cap stocks with significant upside potential, you should look at the top 20 most popular hedge fund stocks, as many of these stocks have already outperformed the market. now this year. Video: Click on the image to view our video on the top 5 stocks of hedge funds.

5 most popular shares among hedge funds

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Disclosure: None." This article was originally published in Insider monkey. "data-reactid =" 79 "> Disclosure: None This article was originally published by Insider Monkey.

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