U.S. Markets open in 5 hrs 50 mins

Here’s Why Weitz Investment Trimmed its ACI Worldwide (ACIW) Position

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Jose Karlo Mari Tottoc
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Weitz Investment Management, an investment management firm, published its “Hickory Fund” fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 18.15% was recorded by the fund in the fourth quarter of 2020, slightly below its Russell Midcap benchmark that delivered a 19.91% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Weitz Investment Management, in their Q4 2020 investor letter, mentioned ACI Worldwide, Inc. (NASDAQ: ACIW) and emphasized their views on the company. ACI Worldwide, Inc. is a Watford, United Kingdom-based global payment software company that currently has a $4.5 billion market capitalization. Since the beginning of the year, ACIW delivered a -1.14% return, while its 12-month gains are still up by 57.31%. As of March 30, 2021, the stock closed at $37.99 per share.

Here is what Weitz Investment Management has to say about ACI Worldwide, Inc. in their Q4 2020 investor letter:

"Portfolio gains were led this quarter by ACI Worldwide. We have long held that ACI’s key banking and payments services have been underappreciated. During the quarter, a well-known activist investor in the technology and payments sector went public with a similar thesis, asking management to realize that value via a sale of the company. We have trimmed our holdings to manage the size of the position and the potential risk that a deal may not materialize."

Copyright: rawpixel / 123RF Stock Photo

Our calculations show that ACI Worldwide, Inc. (NASDAQ: ACIW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, ACI Worldwide, Inc. was in 30 hedge fund portfolios, compared to 29 funds in the third quarter. ACIW delivered a 0.38% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.