SS&C Technologies: AI Disintermediation Fears Are Overdone

Summary SS&C Technologies Holdings has dropped this year largely due to unfounded AI disintermediation fears. SSNC has experienced a recent rally after its Q2 results -- showing both that the company is operating strongly and that it offers a potential hedge to small-cap stocks. SSNC has been performing strongly and generously returning capital to investors while remaining a dominant player in the industry -- though it trades at a discount to its peers. There is no reason for such a discount. Even if SSNC were to trade at multiples just equivalent to its peers (with no market leader premium), there is significant upside. PM Images/DigitalVision via Getty Images Seeking Alpha's James Picerno wrote a September 3rd article titled " Value and Small Caps Stage a Comeback - Will It Last This Time? " The Russell 2000 is a good barometer for small-cap performance, as This article was written by Matthew Levy 293 Followers Follow "In investing, what is comfortable is rarely profitable." - Robert Arnott I am a "Value" and "Growth" retail investor, looking for opportunities in emerging and undervalued stocks, often counter to conventional thought. I use fundamentals to back up my argument, and also like to highlight stocks which I believe to be overvalued. I have enjoyed nice gains from using my strategies, finding value in everything from Research in Motion, SuperValue, ZipCar, and ClearWire to Apple, Netflix, Tesla and Google (before they all jumped 60% - 2000% or more). I have been actively trading for more than a decade, focussing primarily on stocks. With the privilege of having lived in New York for many years, I have attended multiple shareholder meetings, conferences and sector exhibitions. Over time, I have found that I am particularly interested in innovation - across every sector. Being a small business owner, I enjoy seeing first hand how certain companies directly affect consumers, for better or worse, by doing my own research through channels such as assessing website and store traffic, eBay and other 3rd Party Website sell-through, and customer satisfaction/feedback. There are always good investments to be made, and I try to find them by looking for a combination of growth, unique opportunity, and value - to both shareholder, and arguably more importantly, to its own customers. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SSNC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.