Oracle Corporation (NASDAQ:ORCL): Ben Levine, Andrew Manuel and Stefan Renold Like It


Is Oracle Corporation (NASDAQ:ORCL) a worthy investment right now? Money managers are getting less bullish. The number of long hedge fund positions decreased by 2 recently.ORCL was in 73 hedge funds’ portfolio at the end of the third quarter of 2014. According to Insider Monkey, there were 75 hedge funds with ORCL positions at the end of the previous quarter. Should you be concerned about this small decline?

A study at Insider Monkey revealed that the most popular small-cap stocks in hedge funds’ portfolio beat the S&P 500 index by 18 percentage points a year for a decade in their back tests. However, hedge funds’ most popular large-cap picks outperformed the market by only 2 percentage points. Oracle is still one of the most popular stocks among hedge funds, so investors shouldn’t worry about the recent decline in hedge fund interest. Actually some hedge funds like Jim Simons’ RenTech or Ben Levine, Andrew Manuel, and Stefan Renold’s LMR have been buying Oracle.

Keeping this in mind, let’s take a look at the fresh action regarding Oracle Corporation (NASDAQ:ORCL).


How have hedgies been trading Oracle Corporation (NASDAQ:ORCL)?

Heading into Q4, a total of 73 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

According to Insider Monkey, Yacktman Asset Management, managed by Donald Yacktman, holds the biggest position in Oracle Corporation (NASDAQ:ORCL). Yacktman Asset Management has a $2.3678 billion position in the stock, comprising 4.9% of its 13F portfolio. On Yacktman Asset Management’s heels is Eagle Capital Management, managed by Boykin Curry, which held a $1.7522 billion position; the fund has 6.8% of its 13F portfolio invested in the stock. Other managers with similar optimism encompass Jean-Marie Eveillard’s First Eagle Investment Management, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC and Richard S. Pzena’s Pzena Investment Management.

Because Oracle Corporation (NASDAQ:ORCL) has faced falling interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedge funds that decided to sell off their positions entirely heading into Q4. Interestingly, Glenn Greenberg’s Brave Warrior Capital said goodbye to the largest investment of all the hedgies monitored by Insider Monkey, comprising about $319.7 million in stock, and Andrew Spokes of Farallon Capital was right behind this move, as the fund said goodbye to about $110.2 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds heading into Q4.

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